Joe Pelayo, CCIM, SIOR and George Pelayo with Total Real Estate Consultants, Inc. listed 5401 N Haverhill Road in West Palm Beach for sale. The motivated seller, an investor who was referred to the team by a residential agent, believed it was the opportune time to sell, given the property’s stable tenant situation. The property was 2,200 +/- square footage featuring a unique layout with a roll-up door and warehouse space in the front complemented by an office space on the second floor. George says, “The listing was very popular. We had multiple showings per week. The majority of prospects were more inclined to pursue an owner-user purchase as opposed to investment.” With tenants secured for at least another year, this posed a challenge for the father-son duo, Joe and George Pelayo, but they were resolute in their efforts.
Erik Johnson, CCIM, MBA from Gator Commercial Real Estate, and his client, a division of Retail Solution Center, were seeking a unique property. “My client was looking for a small flex space, which is difficult since this kind of property hasn’t really been built in the last 15+ years,” says Erik, “So, when supply is limited, you’ve got to get creative.” Upon discovering the listing at 5401 N Haverhill, Erik collaborated with George to uncover an opportunity that others might have overlooked.
The trio of commercial real estate professionals were able to successfully negotiate with all parties and find fair terms, which led to the property quickly being placed under contract. However, the contract dissipated just as quickly due to various circumstances. “What made this transaction unique was having the tenants inside and running an early termination for their lease. The buyer and seller had to contribute to get the transaction closed. That originally killed the deal,” says Joe. However, persistence and clear communication reignited the transaction.
Erik reflected, “These types of deals typically won’t get done. There was a lot of back and forth and many difficult conversations, but we were able to find mutually acceptable solutions creating a win-win-win for all parties. Not everyone would’ve been able to make this happen, and I contribute a large part of this success to the CCIM coursework/network as well as the transparent communication and professionalism on all sides.”
The new owners of this commercial real estate property anticipate utilizing their brand-new location for expanding operations. Erik emphasized, “It wasn’t the size of the deal, it was supporting an expanding company while they manage their growth. This is an often-overlooked component in commercial real estate.” The transaction allowed the seller to invest in other locations, aided the tenants in finding a new location with support, and empowered the buyer with greater control over their future as their own landlord.