TRANSACTION TYPE & DETAILS
Date: July 2022
Transaction Type: Sale
Property Type: Industrial
Size: 25,875 sq. ft.
Sale Price: $3,105,000 USD
"Working with Allyson and Allen and their team made this process much smoother. As soon as I received the call from Allyson I felt reassured we were working with a reliable group that would ensure this deal went through correctly. I would work with them again in a heartbeat."
In September 2017, CF Kent approached Allyson Yost, SIOR, vice president of Colliers International in Dallas, and Allen Gump, SIOR, executive vice president of Colliers International in Dallas, for assistance with purchasing 8400 Sovereign Row in order to manufacture and assemble hotel furniture. With manufacturing space being difficult to locate “and regulate” in California, Yost and Gump were called upon to assist in efforts to help grow their business. Fast forward to the pandemic, with manufacturing processes impacted and altered in a variety of ways, CF Kent decided to put 8400 Sovereign Row on the market for lease. Due to the volatility of the market, companies were more interested in purchasing. CF Kent remained confident they would expand their manufacturing, which provided an uncertainty on selling. After continued offers over the course of two years, CF Kent agreed to officially put the building on the market for sale at an above market sales price. Quickly, the building was under contract but dropped at the last minute.
Along came SVM Enterprises, who had been looking for a warehouse to buy in a difficult market with limited warehouse space.
"With the knowledge that Peter was involved, I knew the lender on the other side was truthful, and we were able to trust that the deal would go through. There is a lot of risk with these types of contracts/loans, and having that trusted connection was what saved this deal."
Aware of the building, Lena Pierce and her partner Ryan Boozer, SIOR, brought SVM Enterprises to the building two days after it dropped from the previous buyer. Within a few days, the parties came to an agreement and began working on the contract. The contract included two extensions, with the second extension requiring a non-refundable deposit along with all Earnest Money and Additional Earnest Money becoming non-refundable. The buyer, requiring an SBA loan, hired Bank of America to fulfill their financing needs. After the second extension, the buyer had not yet received their SBA loan approval. Due to the uncertainty of when the SBA loan would get approved, the buyer requested an extension outside of the agreed contract.
With fear on both sides, the seller not agreeing to the extension and the buyer not getting the approval, there was major uncertainty. Fortunately, Peter Drake, senior vice president and development officer for Bank of America, along with Yost and Gump, researched the parties involved in the deal and immediately connected. Quickly, there was confidence that helped lead the seller to agree to an additional 30-day extension. Days later, the buyer received their approval.
PARTICIPANTS & INFORMATION PROVIDED BY
Allyson Yost, SIOR
Allen Gump, SIOR
Ryan Boozer, SIOR
Peter Drake, SIOR Partner, Bank of America