Terra Firma

Terra Firma enjoyed their current administrative office space for their building and remodeling business but had growth plans that involved adding shop space and equipment storage to their headquarters. They requested that Element survey the market and determine if there were any viable options that could accommodate their future needs. After combing the market and reviewing several options that weren't quite the right fit, Element was able to identify a building coming to the market that looked like it could be a great option.  Element made the introductions and assisted in reviewing Terra Firma’s future space needs against the building's existing space layout.

‍Role
Buyer Representation, Site Selection, Acquisition, Due Diligence, Project Management, Financing Coordination, and Disposition

Opportunity & Challenges
Terra Firma needed a larger headquarters that could accommodate administrative offices, a cabinet shop, and equipment storage while remaining close to its existing location. The selected property offered tremendous potential but presented challenges including environmental due diligence, financing, future space planning, and a competitive acquisition process.

Approach

Element identified an off-market opportunity, developed occupancy scenarios to maximize long-term flexibility, negotiated the purchase against multiple competing offers, managed environmental due diligence, coordinated SBA financing, oversaw project implementation, and ultimately managed the sale of Terra Firma's former headquarters.

Element handled the offer presentation and purchase agreement negotiation, beating out four other bidders on the property.  Element also managed the general and environmental due diligence processes on behalf of Terra Firma once the purchase agreement was executed.  This included completing a Phase I ESA which resulted in the identification of an offsite Recognized Environmental Condition (REC) related to VOCs that were found in the soils of a nearby redevelopment project. While this was unfortunate news for both Buyer and Seller, it was much better to identify this issue during the due diligence process rather than after the transaction was complete and the Buyer, Terra Firma, carried all the risk and potential costs of any future remediation.

Results
→ Successfully acquired a 12,800 SF headquarters supporting future business growth
→ Negotiated the winning offer in a competitive, multiple-bid process
→ Mitigated environmental risk through strategic due diligence and seller-funded remediation
→ Coordinated SBA financing, project management, and occupancy planning
→ Managed the successful disposition of the client's previous property at targeted value
→ Delivered an end-to-end real estate strategy from acquisition through relocation and sale
→ From property identification through due diligence and closing, the project took 4 months, with the Seller leasing back the property for 4 months
→ Subsequent environmental remediation and Buyer buildout construction took 3 months
→ Total project from identification to open for business totaling approximately 11 months