1111 Neville Street

Challenge

Artesia Real Estate Investments (the client) purchased the 47,000 SE Industrial property at 1111 Neville Street in 2016, knowing that they would need to lease the building from 100% vacancy after a short seller lease-back period expired. They retained the seller's agent, Carey Greene, as their own leasing agent. After successfully leasing the property in its entirety to four tenants and cash flowing the asset for several years, Artesia considered a sale in late 2021. The client was able to capture some of the rising industrial rental rates, improving the property's NOl, but interest rate hikes from the Federal Reserve loomed on the horizon. Finding a buyer who would allow the client to exit and hit its investment goals was going to be a challenge.

Action

Artesia asked Carey to quietly look for a buyer of the property. Knowing many buyers in the local market searching for value-add industrial and covered land opportunities, he quickly identified a strong buyer who was relinquishing a property as part of a 1031 exchange. The deal was put under letter of intent within days and under contract within weeks.

Result

The property was sold to the buyer and closed at the contract price. The seller, with Carey’s help, was able to navigate a delay in the sale of the buyer's “downleg"property and work through some required upgrades to emergency egress and lighting that had to occur before the property could transfer. The buyer was able to close after the Fed's significant interest rate hikes but before his interest rate lock expired. The client successfully exited and hit its investment goals.

Testimonial

Carey helped us from start to finish on this deal over about a six year period. We thought of him as more than a broker - more like one of our partners. He was a great advocate as our leasing and sale advisor, but it wasn't just about getting deals done. He would stop by the property, look around and let us know if anything needed to be addressed. As an out-of-state owner, it was great to know that we had his eyes and ears on the ground for us. Of course, his brokerage expertise allowed us to exit in a very successful manner as well!

- Daniel Forbes, Asset Manager (Artesia Real Estate Investments)