Acquisition, Lease & Investment Sale – The Hat Trick
Challenge:
Mid South Rehab Services, one of the largest post-acute therapy providers in the state of Mississippi, with an expanding footprint throughout the Southeast, had grown to a point to where it needed to relocate from its current headquarters that it built in the early 2000’s. Mid South needed to find an existing facility to retrofit for its need vs. building a new facility due to time constraints and rising construction costs. In addition, they would also need to dispose of their current facility upon successful acquisition of a new headquarters.
Action:
Multi-year Process – Sourced and toured numerous on and off-market properties in the desirable Highland Colony Office Market over a multi-year period for Mid South.
599 Steed Road Ridgeland, Mississippi – 9,500 SF Class A Office Building acquired with minimal renovations needed to accommodate client’s use.
711 Avignon Ridgeland, Mississippi – 4,800 SF Class B Office Building leased to a national credit Environmental firm for 5 years and subsequently sold to an Individual Investor.
Result:
· Achieved acquisition cost of new headquarters building substantially below the cost to build new facility, representing 30% savings to the client, while completing the transaction from contract to close in 54 days to satisfy Seller’s year end close requirement.
· Sourced a national credit tenant to lease the building vs. selling vacant to owner user, ultimately achieving a sale price 6% above the original list price.
· Successfully negotiated a lease and sale to a potential Investor simultaneously, allowing the investment sale transaction to occur 41 days from the time the lease was signed.
UCR Total Transaction Volume: $2.9M
Testimonial:
I had previously worked with UCR through another business I’m involved with and was very satisfied with the work they did on that transaction. So it was logical for me to engage them when I had a commercial real estate need arise for Mid South. I appreciated their continued attempts to source the right facility for us over the last couple years. Their transactional knowledge and experience was invaluable in structuring and negotiating all the purchase of a new office building, as well as the lease and sale of our original building. In addition, they were very hands on with arranging and scheduling all of the needed reports and assessments needed to close the transactions, allowing me to maintain focus on my business, not the real estate deals. I would highly recommend them to any of my friends and clients for their commercial real estate needs.
Stephen Cole, President and Chief Executive Officer
Mid South Rehab Services, Inc.