PROJECT BACKGROUND
In the spring of 2007, Carters Incorporated vacated their warehouse facility in White House, Tennessee. Hart Corporation in conjunction with our Nashville affiliate, NAI Nashville, approached Carters with a joint marketing proposal to assist them with the disposal of this asset as their exclusive agent. Shortly after our presentation, we were informed that Carters had elected to give the assignment to one of our competitors. In part, this was due to a previous relationship with the other firm and the fact that the property value from our competitor was considerably higher than what Hart/NAI had recommended.
During the balance of 2007 and 2008, Hart Corporation’s Corporate Division stayed in regular contact with Carters and received updates as to the marketing of the facility. As of February 2009, the property was still on the market with little activity and we were invited again to discuss our marketing program and pricing structure. Hart/NAI demonstrated that our joint marketing efforts would provide the best exposure for the property on a national, regional and local level. Shortly thereafter, Hart/NAI was awarded the exclusive agency assignment and was authorized to reduce the price to a level that was more in line with current market conditions. This was significantly lower than what had been proposed by our competitor.
The property had a variety of different strategic advantages but there were some challenges as well. While the building was located just off of I-65 and only about 30 minutes from downtown Nashville, it was divided into 2 sections. Approximately 1/3 of the building had restrictive ceiling heights and a mezzanine structure that would be in the way for most warehouse purposes.
THE DEAL
Regardless of how long a property has been on the market, we commit to canvass all of the major industry within a 35 to 40 mile radius of the property that we are marketing. We also immediately approach all local investors that potentially could have an interest in the property on a speculative basis.
Hart’s Corporate Division, along with their Atlanta Southeast Regional Office and NAI Nashville physically canvassed the greater Nashville market in hopes of finding a buyer or tenant. From this effort, they found several companies that had either immediate or upcoming needs. This yielded inspections but in the end, none of the users decided to pursue the building. However, the team did come across a local investor that showed some interest in further evaluating the property.
The investor had known that the property had been on the market for quite some time. They had not pursued it previously because of pricing and a perceived lack of motivation on behalf of Carters.
Hart and NAI quickly made arrangements for the investor to tour the property. This lead to further negotiations and closing took place in September 2009 just 5 months after Hart/NAI received the marketing assignment.