From Lease to Sold
The owners of the former West Tennessee Business College had been trying for over a year to sell the building that had housed its learning center. A land lease on the property created large carrying costs for the owners, and it also made the property unattractive to potential buyers who would prefer to own the land along with the building.
The Tranzon team saw that the land lease obstacle needed to be overcome for a successful sale. They approached the holder of the lease about including the land in the sale and came to an arrangement to sell the land in exchange for a set portion of the proceeds.
With the land now part of the deal, Tranzon went to work on marketing the property to a national audience as an online auction. The ripple effect of COVID - 19 has already had an impact on the value of office property, and with conventional tools like open house showings off the table, Tranzon’s marketing professionals knew that broad exposure to known investors would be a key element in a successful sale.
Bidding was intense. Ten bidders drove the price to more than 70% over the seller’s reserve (the reserve being the price threshold they needed to reach). And the buyer, from Tacoma, Washington, was pleased to be purchasing the land and building with clear title.