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August 14, 2015
Closed Sales

Palo Verde Self Storage – Tucson, Arizona

The seller of this storage sought out the expertise of our team to help them sell their property within a limited time frame. Our client had a loan maturity coming due and did not wish to refinance as this facility was no longer one of his core assets. The storage had deferred maintenance, the management systems were not computerized, and it was located on a main industrial road with a low household count.

Our team began by assisting our client in finding the appropriate property management team to come in, take over the business, perform an audit, and begin their prep to sell checklist. After bringing the storage to market, our team advertised it nationally and numerous qualified prospects came forward to purchase the facility. After getting the best offer, we were able to secure a pass-through deposit to our client and the escrow process began. During that time period, an encroachment was uncovered that was unknown to any of the prior owners and financiers of the storage. At the direction of the seller, our team went to Pima County to seek a remedy. The remedy turned out to be a modification of setback request. Using our team’s resources we were able to find the true owners of the encumbered properties, give proper notice, and receive no conflict from the other owners. By dual tracking the process with the trustees of the neighboring properties, our team was able to get a quick resolution and avoid a possible $100k discount that would have been applied to the property had that encroachment not been resolved. Another problem arose while waiting for escrow to close: a microburst hit the area and knocked off a section of the roof. Due to a clause in our purchase agreement, the buyer and seller were able to quickly find a mutually agreeable resolution.

Because our team was able to manage several unusual events during the escrow process, we were able to close in a timely fashion and our client was awarded with a price about 20% higher than they had originally expected.