Navigating Challenges, Maximizing Opportunities: Transforming San Rafael's Industrial Canal District to a Prime Investment

Challenge

The owner partners owned three warehouses on two separate parcels in the industrial canal district of San Rafael, since the 1950’s.

The properties had deferred maintenance and obsolete mechanical items. The new owners would have to make a significant additional investment to bring the property to market lease rates and to have quality tenants.

Some of the tenants sublet their spaces for a profit as their business space needs changed over the years and rent rates were 48 percent of market. The tenants had taken full advantage of the situation.

Action

We led a lease audit to determine the owners’ rights and responsibility upon the properties.

We conducted a full Cre-SWAP study to determine the potential use of the property and the required investment to reach optimal performance and best use.

In order to bring the sellers an equitable sale we had to illustrated a clear path to profitability for the prospective owners.

In order to reach out to all prospective investors we prepared a clear and focused presentation on how to best achieve the properties full potential and we enacted our Full Market Exposure program reaching out to both local and regional qualified buyers.

Results

We received strong interest from the investment and owner user communities resulting in several offers and giving the sellers an opportunity to choose the terms that most worked for their unique circumstances. One parcel was purchased by an investor that will pursue the required development and the second parcel was purchased by an owner user that will benefit from the high traffic, visibility and location.

Testimonial

"Ces and Steve transformed a complex, unfamiliar process into a streamlined sale. From conducting initial property inspections to informing tenants and effectively showcasing our property to the investment world, they were invaluable. Their expertise tailored the sale to our unique circumstances. For anyone considering selling or investing in Commercial Real Estate, we wholeheartedly recommend Ces and Steve for their exceptional service and results."

Gaye Lauchenauer and Phyllis Sharrow, Co-Owners and Trustees