CHALLENGE
The owner of 3190 Sexsmith Road had owned and managed the multi-tenant service commercial buildings for over three years. After investing both money and time to build the project, the owner decided that it was the right opportunity to dispose of the investment property given the very active industrial market in Kelowna. Having already successfully leased up the project for the owner a few years earlier, Jason Wills accepted the challenge of finding the right investor for the property to take over what the owner had successfully built.
INTRODUCTION
In 2014, the owner of 3190 Sexsmith Road saw an opportunity to develop a two-phase multi-tenant service commercial building on its property to meet growing demand from industrial users for small bay units. Despite being in a predominantly agricultural area, 3190 Sexsmith Road became the first property along Sexsmith Road to be successfully rezoned to I6, low-impact transitional industrial, which would allow for the development of a service commercial building. Between 2015 and 2016, the owner developed the property which now features two, multi-tenant service commercial buildings consisting of eleven units totaling 27,518 square feet. The owner had previously engaged Jason Wills and Murray Wills to market and lease the project. After successfully leasing up both phases to long-term tenants, the owner re-engaged the services of Jason Wills to market and sell the property as part of an exclusive listing contract.
SERVICES
Colliers developed a comprehensive marketing package to clearly articulate the opportunity to investors by highlighting the property’s features and value. Colliers identified potential purchasers by utilizing key contacts in Colliers’ global database. Recognizing the exclusivity of this listing, Colliers initiated the marketing program with a professional marketing email campaign delivered to specific target groups and logical purchasers locally, nationally and internationally. By utilizing our substantial pool of resources to help position the investment opportunity, Colliers successfully attracted the right buyer while maximizing value in the shortest period of time.
RESULTS
Following a successful marketing campaign, Jason secured an accepted offer on the property within a few weeks of the investment opportunity being on the market. The deal closed in early November 2018 at a price of $6.3 million representing a 5.2% capitalization rate on in-place income.
