The owner of a K-Mart wanted to sell his property, but their loan terms were so unattractive that buyers were demanding a $1mm discount and the defeasance costs were likewise, about $1mm. However, the loan had a special stipulation. It could be paid off ON ONE DAY, AND ONE DAY ONLY, without defeasance. If it was not paid off on that one day, the loan would automatically renew on the same unfavorable terms.
Shane was awarded the assignment, among many alternatives brokers.
In finding a buyer, great care went into marketing the property nationwide, to institutions, private markets, and through the brokerage community. Shane accessed multiple buyers, but in addition to bidding the price, significant time and effort was spent qualifying buyers and investigating their acquisition histories. It was not just their ability to purchase, which they all had, but their willingness to jump through the hoops that was created by the closing date.
Once the buyer was selected, who was from California and had owned in a small town, we handled all of the due diligence personally. We created back up plans when issues arose (they always do), and back up buyers should the unthinkable occur. We worked to make the transaction fully non-contingent with significant deposits well in advance of the closing. We continued to monitor all potential issues and to work with the buyer’s and seller’s counsel to keep things aligned for closing on the day specified. It did.
We were all gratified and somewhat relieved (and exhausted) when the deal closed. Even the Lender was surprised it did, and noted that this was very rare that a sale could happen as it did.