Case Study: Overcoming Obstacles in the Sale of a Self-Storage Facility

Hastings Self-Storage Sale

The sale of the self-storage facility located at 1600 W A St, Hastings, Nebraska, presented a complex set of challenges. Despite numerous obstacles, the agent successfully navigated the difficulties of the transaction, closing the deal at 101.33% of the list price. The following case study details the hurdles faced and the strategies employed to achieve a successful outcome.

The Property and Initial Challenges

The subject property is a 31-year-old self-storage facility situated in a tertiary market. The property’s age and location were only the beginning of the challenges faced. During the first escrow, it was discovered that several buildings on the property encroached onto the adjacent land owned by Union Pacific Railroad. This discovery posed a significant issue, as it jeopardized the ability to obtain a clear title and favorable lending conditions, leading the initial buyer to request an immediate escrow cancellation.

Strategic Problem Solving

Faced with this challenge, the agent provided the seller with several options, including pursuing an adverse possession judgment, negotiating a land lease with the railroad, or undertaking building renovations to bring the property into compliance. After careful consideration, the decision was made to remove the non-compliant units, despite the anticipated reduction in revenue. This decision required renegotiating the sale price, but the agent skillfully managed to secure a price adjustment of less than 3%, preserving the value of the deal.

Navigating Additional Obstacles

Apart from the encroachment issue, the transaction faced further complications. Due to previously scheduled international travel, the seller requested an expedited closing, giving the parties only one month to finalize the deal. This tight timeline was further strained when the lender required an updated ALTA survey and appraisal following the remediation efforts. With local ALTA surveyors unavailable, the agent leveraged his network to engage a surveyor familiar with the property, ensuring the necessary survey was completed just weeks before closing.

The appraisal, another critical component, was also expedited. The agent coordinated with the lender to obtain swift committee approvals, ensuring the transaction stayed on track. Despite these challenges, the agent was able to facilitate a smooth closing, which occurred one day earlier than the expedited schedule, solidifying the success of the transaction.

Case Study Conclusion

The sale of the self-storage facility at 1600 W A St, Hastings, Nebraska, is a testament to expertise, tenacity, and commitment to client satisfaction. By overcoming significant obstacles, including property encroachment, tight timelines, and lender requirements, the deal was not only closed at a record price per net rentable square foot ($/NRSF) for the area, but also demonstrated the gold standard of service that Matthews™ is known for.

Key Takeaways

• Problem Solving: Effectively managed significant title issues and compliance challenges through strategic decision-making.
• Market Expertise: Leveraged in-depth knowledge of the self-storage market and existing professional relationships to overcome logistical obstacles.
• Client Satisfaction: Maintained strong relationships with both the buyer and seller, resulting in a successful transaction despite numerous hurdles.
• Timely Execution: Expedited the closing process by 31 days, demonstrating efficiency and the ability to work under pressure.