26365 Earthmover Circle & 26310 Lester Circle, Corona, CA
±3.15 Acre Contractor Yard with ±3,500 SF Office Building
Seller: Parcell Steel
Buyer: LMS Reinforcing Steel
L&A FASG was retained by GlassRatner, now B. Riley Financial, on behalf of their client Parcell Steel. The assignment was taken with the understanding the client would be filing Chapter 7 Bankruptcy potentially within ninety days.
We recommended listing the property at $2,600,000, which was at the mid-point between what an investor might offer and what an owner-user would be willing to offer
Given the financial instability of the business, we had to move quickly. Additionally, the Seller notified us a fresh seven year lease had recently been executed. Therefore, the owner-user market was no longer available.
Since, the investor market would offer on the low end of the range, and the outstanding debt exceeded the range, the Seller was more committed to filing bankruptcy. We received a couple low offers from investors which would not satisfy the outstanding debt. Our conversations with the tenant, a multi-national company, revealed they had no interest in acquiring the property. Knowing the bankruptcy filing was imminent, we used that intelligence as a bargaining chip with the tenant. The tenant came to the realization it was now in their best interest to acquire the property. As a result, they acquired the property in an all-cash transaction and closed the escrow at $2,400,000.