Property: 5801 Jefferson NE
Square Footage: 46,000 on 3.75 acres
Property Information: The 46,000/SF food processing facility on 3.75 acres in the desirable I-25 Corridor sub-market was the former Windsor Foods food processing facility. The Seller was a corporation based in Texas that had determined that they could not cost effectively expand this facility to meet their future needs, so they decided to close the facility, sell the property and move the operation to Mississippi.
Sales Strategy: This listing opportunity was a contest between numerous local brokers. Keith Meyer was able to convince the Seller that he could best meet their needs because he brought a unique strategy to the table. This positioning also enabled Maestas & Ward to get the property sold in one of the most difficult real estate markets in recent history.
Keith had witnessed single purpose buildings such as these languish on the market for over a year in a healthy market. His recommendation to the Seller was to actively market the property to other food processors for six months. Food processors would be the most likely to pay the highest price as it was a “plug and play” food processing facility. In that context, Keith directly contacted every food processor he could identify in Texas, New Mexico and Arizona to solicit a buyer. Four tours were generated, but no offers.
After six months and no offer, Keith revised the pricing and marketing and made it a redevelopment opportunity. In preparation, Keith brought in four contractors and had them prepare competitive quotes to convert the building to a traditional office warehouse/flex building. The rework was substantial as the existing building had floor drains; there was not a level floor anywhere. The entire building was designed to operate at 50 degrees Fahrenheit and it also had freezer and cooler space and had been built in three phases.
Upon implementing the redevelopment marketing efforts, he was able to generate two offers from qualified buyers. Keith and the client choose one of the offers after pre-qualifying the buyer through the SBA as an owner-occupant. The property closed on September 28, 2009 and the remodeling will be complete at the end of 2009.