Situation:

ProTen was hired by a not-for-profit client find a facility to house their programs for a developmentally disabled, for-profit, fulfillment business. This client had worked unsuccessfully with another broker for almost two years before hiring ProTen. In most municipalities, their use of a facility often triggered the need for a special use or zoning change application. Consequently, our understanding about the zoning restrictions was critical.

Approach

ProTen first investigated zoning in over a dozen municipalities. ProTen then researched buildings in those municipalities where the zoning would permit the use or allow our client to apply for a special use. The survey of almost 100 buildings produced several listed and off-market options.

Solution

ProTen uncovered a property, which not only met our client's location needs, but also met its operational needs due to some favorable existing conditions. The building had just been acquired by a real estate investment trust (REIT) who wanted to lease the property and generate cash flow from the investment. However, ProTen was able to convince the REIT to sell the building because of the soft leasing market. More importantly, ProTen successfully persuaded the owner to accept our client's zoning contingency and timeline, even though the zoning process added up to four months to the purchase timeline. The REIT had to write-off the rent loss during the contingency period and also engineer a defeasance, since the building mortgage had been securitized. Our client received their zoning approval in concert with the REIT obtaining the defeasance. Our client opened their state-of-the-art facility and now serves an even larger base of clients.

Case Studies : 1 . 2 . 3 . 4 . 5 . 6 . 7 .