Warehouse for Sale in Sanford Florida 32771

Background

The Sellers of the Elm Ave property have closed on a parcel for their new warehouse, which was purchased to accommodate their growth and increase operational efficiencies. The timeframe for the completion of their new facility is now estimated to be 12- 14 months away having recently received approval from the city to begin construction.

Tradeoffs

We believe that there must be mutually advantageous benefits to both the Buyer and Seller if a deal is to get done prior to Seller’s relocation. Therefore, we have examined the tradeoffs involved and are suggesting a Seller and Buyer incentive for initiating a sale before they move to their new facility:

·         Seller Incentive — By selling now they can turn their focus to their new warehouse without concerns of holding a property for sale after they relocate.

·         Buyer Incentive — By buying it now Buyer retains the tenants as they process approvals for their use with the City and earn a NNN 5% rental stream.

Question

The question is what are the terms that are acceptable to both sides during the time that Seller resides on the property? The following terms would be acceptable to the Seller if a Buyer wanted to buy the property now:

• Seller will continue paying taxes on the property and maintenance until the date that their relocation is complete currently around $56,000/year.
• Sellers will pay the Buyers a monthly rent of $25,000 during the time they occupy the space, and they remain at the property.
• Seller believes that offering a sale-leaseback arrangement will be viewed as a positive Buyer incentive.
• Seller also recognizes that any upside in value of the property, from the date of the closing, will accrue to the Buyer.
• A Purchase and Sale Agreement (PSA) must be accompanied by a 5% escrow deposit delivered to the Seller's attorney.
• The escrow will be fully refundable within a thirty-day evaluation period after which it will go hard and distributed out of escrow into Seller's account.
• The Title Company the Seller would suggest is Gateway Title Group, a current tenant on the property.
• Commissions: Seller pays his broker, and Buyer pays his broker i.e. no broker splits by listing broker are being offered.