We’ve all had challenging deals that require that EXTRA effort. Recently, we had the opportunity to work on a project requiring a bit of hurdle jumping, overcoming obstacles including current tenant, deadlines, attorneys, etc. Single tenant Landlords purchasing “at the time” credit deals assume these are no-brainers and will require little attention . . . just collect the checks! But when the tenant goes south or doesn’t renew, their attention is immediately demanded. “Plan A” goes into action; find replacement tenant fast! After a few months no tenant, desperation sets in and bad decisions are made. Box gets chopped up and Landlord puts in Anytenant, LLC and prays rent will come. This is just a short term patch for a bigger problem. Cash flow is negative and growing worse. Plan “B” goes into action; get qualified and experienced help! We marketed the space to qualified tenants and procured Qualified Tenant, Inc. Now, what do you do with Anytenant, LLC, who pays what they want and decides which lease terms are relevant. Relocation, buy out, default? We offered all the above. Anytenant, LLC is cooperative at first, then decides they don’t want to relocate or a buyout . . . they like their current arrangement just fine. Next step: default for non-payment and other violations. Discussions and colorful text messages continue. Legal proceedings and expenses begin mounting. Meanwhile, Qualified Tenant, Inc. is growing nervous about delivery and look for their Plan B. Landlord is faced with loosing Qualified Tenant, Inc. and learning to live with Anytenant, LLC. We continued to work with all parties and encourage Landlord to see the light at the end of the tunnel, revealing a solid single tenant investment property. Finally, an agreement is reached for Anytenant, LLC to move along, and they do. We started slingin’ hammers and playing catchup for delivery to QualifiedTenant, Inc. and made it with a few days to spare! Now QualifiedTenant, Inc. and Landlord are living happily ever after and Anytenant, LLC has moved on to another desperate Landlord. What did we learn? Diligent efforts, patience and persistence, are required tools in the commercial real estate business. Putting them into practice is not always easy, but saves lots of time money and heartburn in the long run.
With over 27 years of experience, Real Estate Southeast has learned how to turn challenges into profits. Our exceptional team consists of a group of talented and dedicated professionals; “proactive problem solvers . . . profit makers”, providing investors and tenants with positive results. Working with individual investors and institutions, Real Estate Southeast provides services to meet a client’s specific needs, ranging from eyes & ears, brokerage, project leasing, commercial property management to redevelopment. Check out our properties!