GM Properties has provided brokerage sales and acquisition services to a Southern CA public agency since 2019. The client required the sale of its existing 22,000 sf office building in the City of Commerce and the acquisition of a new, smaller office property that would better accommodate its planned downsizing. The process was not without its challenges including a transition in client leadership, limited input due to the Board of Directors’ meeting schedule, and required public disclosures due to the client being a government entity. Additionally, the existing building was in a challenging location close to the 5 Freeway that could result in issues with eminent domain, and SoCal Edison owned a portion of the parking lot, which further complicated the sale.

GM Properties strategically assessed the situation and determined that a buyer would need to be an owner occupier. By positioning the property and pricing accurately, the building sold for $6.2M to an owner/user. Despite a very constrained market, the GM Properties team was able to secure a 7,500 sf industrial property for $2.8M for acquisition, which the client planned to convert into office space. The significant difference in the sale and acquisition prices allowed the client to invest in the property’s conversion and build-to-suit, while also reserving excess funds that could be allocated toward other investments by the entity.