Midtown Sale: Facilitating Growth and Culture of Local Advertising Company
“Snipes provided a tremendous amount of experience and expertise to Whitehardt’s commercial real estate transaction and we would highly recommend this team to any business owner.”
Challenge
Whitehardt, an Advertising and Consulting firm in Nashville, was considering new architectural and construction plans at their Music Row location to accommodate their expanding business. They hired Stan Snipes to analyze the comparison of expansion construction vs. purchasing a new facility. Selling their existing property and purchasing another seemed like a good possibility, but the availability for new properties to purchase was slim in the Nashville area.
Solution
Snipes included Whitehardt’s two existing properties into a larger property assemblage sale that ultimately garnered offers from multiple developers across the nation. Making the decision to sell and relocate became the only logical choice. Snipes discovered that Toby Keith and his partner were selling their 18,000 SF office building at 2303 21st Avenue South. The location, size, and layout were all a perfect fit for Whitehardt’s expanding business, but they weren’t the only buyers fond of the property. Whitehardt relied upon Snipes relationship with the seller side and negotiation experience to help them purchase the office building for $2.6 million…a 40% discount from comparable properties in the Midtown market!
Results
- Providing value through option comparison. After understanding Whitehardt’s need for expansion space, Snipes took a detailed approach to analyzing the costs of expansion versus potential gain from placing the existing properties into to a larger assemblage with surrounding owners.
- More is better…when we are selling. By marketing Whitehardt’s properties as an assemblage, Snipes were able to fetch an offer from a national developer that was nearly TWICE the value of what they would have obtained as a stand-alone sale.
- But when we are buying…less is best. Capitalizing on Snipes market knowledge and relationships, Whitehardt was able to purchase a 18,000 SF office building with a 21st Avenue address at a 40% discount from comparable properties in Midtown.