BROKER SAVES SALE WITH LAST MINUTE LOAN PAYOFF SETTLEMENT
BACKGROUND:
A family immigrated to the United States and purchased a hotel in the 1970’s in Kennesaw, Georgia. They lived in the hotel and raised their family there. In 2007 the family decided to raze the hotel and build a retail shopping center. The financial crisis of 2008 hit just as their new building delivered. They operated a business in one of the units and did their best as landlords. It was 2018 before the center was fully leased and a second-generation family member (who had lived in the hotel as a child) decided it was time to sell the center and engaged Ben Pargman.
CHALLENGE:
An owner/user had limited experience with real estate and had built a retail center without expert advice. The leases, records, and accounting were co-mingled with the family business and far from standard. Sub-institutional standard records would prove to be the least of Seller’s problems, when one week before closing, the Seller’s loan payoff arrived $800,000 more than previously reported.
• 8.5% CAP achieved with noncredit leases
• Loan Payoff Settlement with Seller’s Lender
• 45-day DD / 45 day close
RESULT:
In addition to identifying the right purchaser for the asset and coaching the seller through the process of preparing and organizing records, Ben assisted in obtaining seller’s agreement to accept a negotiated payoff.
CLIENT TESTIMONIAL:
“Ben, please know how much I appreciate you and all your work in selling my retail center. This was the first time I have sold commercial real estate, and I am very grateful for the coaching, guidance, and advice you provided through every step of the process. You got us through a huge unexpected zinger right at the end, and we are happy as anything that it’s all behind us. For the first time in my life, I will have one business to focus on. I’m happy about that, my wife is happy, and we are thankful. I don’t plan on buying a retail center anytime soon, but if and when I do, I would definitely work with Ben again.”
-RJ Patel
