Strategic Approach by GM Properties Leads to Successful Sale of Pico Rivera Properties

Earlier this year, GM Properties was approached by an owner interested in selling two industrial properties in the Pico Rivera area of Southern California. Although the buildings were near each other, they each presented unique challenges.

UNIQUE PROPERTIES & OWNER SITUATION

The first property, located at 4219 Rosemead Boulevard, is ±2,790 sf, situated on a ±5,000 sf lot, and was occupied by an automotive body shop. This long-term tenant had been paying below-market rent on a month-to-month lease. Additionally, the property included an auto body paint spray booth.

The second property, located just down the road at 4209 Rosemead Boulevard, is a small unit of approximately ±1,000 sf on a ±5,000 sf lot. This smaller than typical building-to-property ratio resulted in a large yard space.

During the marketing of each property, the owner wanted to continue receiving income by keeping the existing tenants in place. The plan was to give the tenants a 30-day notice once GM Properties proceeded with a buyer. This posed a unique challenge for the GM Properties team, as these property types typically achieve the best sales price when purchased by an owner-user. However, having existing tenants in place during showings might deter buyers or lead to less favorable offers. Additionally, there was a risk of the owner requiring an extension during escrow if the existing tenant could not vacate within the notice timeframe, or worst-case scenario, the owner would need to proceed with an eviction.

GM PROPERTIES’ STRATEGIES

The initial activity level for 4219 Rosemead Boulevard was steady, but GM Properties received several offers below the asking price. Although counters were issued, no agreement was reached with any of the prospects. To increase demand for the property, GM Properties proposed a new strategy focusing on owner-users and highlighting the existing spray booth as a unique amenity, given the difficulties in acquiring permits for new spray booths. As a result, the owner preemptively gave the tenant their 30-day move-out notice. Once the tenant started clearing items out of the building, it presented much more favorably during showings. GM Properties received three offers and opened escrow at the asking price even before the tenant had completely moved out.

For 4209 Rosemead Boulevard, despite initial offers below the asking price, the team stayed firm on the property’s value, highlighting the excess yard space on the property as a value-add. This persistence eventually created a bidding war that drove the sale price above asking.

RESULTS AND CLIENT BENEFITS

We are proud of our team for their ability to navigate the complexities of these properties and find excellent solutions for our clients, despite the cooling market over the past year. GM Properties achieved the best returns for both properties while also creating favorable tenancy solutions for the new owner. 4219 Rosemead Boulevard sold for its asking price at $1.15 million to an owner-user, and 4209 Rosemead Boulevard closed above asking at $800,000.