Pocatello Square REO

Challenge

Pocatello Square is a 139,064 square foot community center that was constructed in 2006. After a series of vacancies that triggered co-tenancy clauses and reduced income, the property had been given back to the lender. Shortly after foreclosing on the property, the lender enlisted another brokerage team to sell the property at auction. However, the auction was unsuccessful, and a new strategy was needed.

Action

Recognizing the need to stabilize the property and restore its occupancy to 100%, the lender worked with the special servicer to develop an effective plan. While the final two leases were being finalized, our team worked to create a comprehensive marketing strategy aimed at selling the property as soon as the new tenants took occupancy. Leveraging the RI Marketplace auction platform, we embarked on an extensive nationwide marketing campaign and successfully identified an East coast buyer who had previous property ownership experience in Idaho and was willing to immediately commit to non-refundable auction terms.

Result

The implementation of our marketing strategy yielded remarkable results, surpassing the lender's pricing expectations and achieving a swift sale of the property. Here are the key outcomes:

• 150+ signed confidentiality agreements: Our outreach efforts generated significant interest from potential buyers, resulting in over 150 parties signing confidentiality agreements to gain access to the due diligence vault.
• 20 fully registered bidders: Through our targeted marketing efforts and comprehensive buyer screening process, we attracted more than 20 qualified bidders who provided proof of funds before the scheduled auction.
• Sold pre-auction above the lender's pricing expectations: The exceptional market response and the competitive bidding environment we cultivated enabled us to secure a buyer before the scheduled auction. The final sale price exceeded the lender's initial pricing expectations.
• 30-day close with $1 million in non-refundable earnest money immediately deposited: Thanks to the auction terms set by the seller, we were able to facilitate a swift closing process. The buyer deposited a substantial $1 million in non-refundable earnest money and closed within 30 days of mutual acceptance.

Testimonial

"The team from Kidder Mathews is top-notch and delivered above our expectations. They worked diligently to produce a large pool of qualified buyers that could close the sales in an accelerated timeframe. Their strategic marketing approach and expertise in leveraging the RI Marketplace auction platform were instrumental in achieving outstanding results. We highly recommend Kidder Mathews for their exceptional service and professionalism."

Neil McKenna

CWCapital