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Property Map

Reladyne

345 N Skokie Hwy , Gurnee, IL 60031
  • Property Type: Industrial
  • Size: 21,938 Sq. Ft.
  • Date Closed: 10/1/2018

Challenges

• Inspection report identified deferred maintenance by tenant under the absolute-net lease structure
• Phase I Environmental reported noted a lapse in the SPPC Plan conditional to the NFR release
• Buyer’s down leg fell out of contract and required debt financing
• 3 years remained on base term and the out-of-state buyer was concerned about the potential of re-tenanting space at the current, above market rental rates
• Buyer pulled out of the deal due to the multiple pending issues above
• Seller was unfamiliar with Sale Lease Back structure and process

Solutions

• Provided client with multiple third-party vendors to repair and address deferred maintenance issues. Structured annual maintenance contracts to elevate future deferred maintenance
• Coordinated new SPPC Plan with tenant and environmental consultant in-line with current IL, EPA standards
• Provided buyer with 2 local banks and 1 national bank from our extensive debt financing relationships
• Negotiated a new 5-year base term with (4) 5-year options between tenant and new owner by decreasing annual rent by 4% for the additional 2 years of term.
• Maintained dialogue with buyer for over 8 months to keep the deal moving forward

Results

• Structured a Sale Lease Back addressing concerns of both parties to the transaction
• The property closed in 5 days upon removal of contingencies at 94% of the listing price

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