Oil Can Henry - Sumner, WA Case Study
Single Tenant NNN
Oil Can Henry
1313 Valley Ave
Sumner, WA 98390
This sale prosed numerous challenges. Among them, the buyer that was scared by their own attorney into being fearful of the contract and discouraged from proceeding with closing
without costly and redundant title insurance. The offer also contained a financing contingency and both buyer and seller were concerned about the banks ability to deliver financing.
The property had an aggressive marketing campaign which led to a bidding war with offers coming in from multiple brokerage firms representing various clients. Investors were encouraged to deliver their best and final offers. Upon having a client in an exchange, we discussed the goals of the buyer, and how an Absolute Net Leased investment might work in their portfolio, which ended up being an excellent fit. We counseled our buyer to submit their offer slightly above the list price to ensure that they would have an attractive component to their offer, which required financing when compared to other all-cash buyers.
The other top three offers were submitted by brokers from other brokerage firms, including several all-cash offers with one at the full list price. The sellers were price motivated and selected our client’s offer. To allay concerns over Oil Can Henry’s financial status, we met directly with Oil Can Henry’s CFO and head of real estate to address the company’s financials and verify the false information provided by another broker.
In order to show that the financing was a reasonable option for the sellers, we had the buyer engage their banker to get a quote and initial underwriting completed at the same time the offer was delivered. We had the appraisal bids with the timing of delivery forwarded to the sellers prior to execution of the Purchase and Sale Agreement to show them our commitment to a speedy transaction. We also gave an open channel for OCH to connect with the buyer’s lender. The banker at Bank of the West delivered service above and beyond the industry standard to make this deal happen. Having a trusted lender and an excellent point man within a lending organization was a crucial part of our ability to make this transaction happen. In the best interest of the Sellers, SVN advocated that they proceed with the offer above list price, showing that the closing timing would be similar for both.
Marketing a property to the widest possible client and broker base works to ensure the highest pricing for the sellers.
The ability to sit down with principals at a company can get rid of some of the false “noise” put out by other brokers and market participants.
Engaging your lender early on, or prior to, a transaction can be the difference in getting the deal closed.
Excellent communication regarding client goals is a must.