Spark Development Site

Challenge:

Our client, a long-standing private owner of an industrial business park in Redmond, sought to sell the property. The sale was complicated by multiple tenants with varying lease expiration dates, making a broad market approach undesirable. The seller needed a developer willing to pay a market-leading price, yet willing to navigate complex timing and entitlement challenges. Light rail was years from completion, yet we needed to capitalize on its anticipated value.

What we did:

Understanding the seller’s desire to use this property sale to create a legacy for his family, sourcing the perfect buyer was critical.  We leveraged our relationships in the market and sourced a best-in-class local developer with a sterling track record. During the due diligence process we encountered environmental issues related to a historic Nike Ajax missile defense site from the Cold War, challenging geotechnical issues related to the area’s high water table, and a changing zoning code related to the future light rail station.

Result:

Through a series of complex negotiations between existing tenants and between buyer and seller, we successfully closed the sale, setting a new benchmark for pricing in the area and accommodating all of the seller’s needs. Additionally, we coordinated a 1031 tax-deferred exchange, sourcing a new investment property for the seller to relocate his business.