Sometime An Old Fashion Method Of Selling Your Shop's Real Estate Works

[Transmission Repair]

I knew nothing about commercial real estate.  I had never leased or sold any before 2015 when I leased our shop.  When it came time to sell in 2020, I didn’t have a clue.  I was forced to sell when the buyer of my business and leaseholder skipped out on a 10-year lease after only 5 years during the summer of 2020.  Unfortunately, he stripped the building and took all the shop equipment with him.  The only way we found out was after-the-fact when we drove by and there was no sign on the building.

By the time we entered the building, he had been gone more than a month.  Instead of dealing with all the hassle of leasing, we decided to sell the real estate,  It was on the tax rolls for a valuation of ~$1M but I felt it was worth much, much more.  But what did I have to sell?  A pretty much empty building sitting on 0.92 acres of land?  What the hell do I do?  I didn’t even know how much to list it for, let alone how to list it without a commissioned real estate firm getting involved.

We had a high-visible freeway location.  There’s only ONE north-south interstate in Utah and it’s I-15; and we were right on it.  I started researching for comparable real estate that was listed in the past 5 years to see what it went for.  NADA! There was nothing to be found.  Long story made short, I settled on a $3.2M asking price.  Ballsy, huh?

But how do I get the word out?  Then I discovered LoopNet.com.  It’s the biggest internet search engine for commercial property for sale or lease.  I listed there for about $125 and it generated a ton of calls from people interested in the building seeking a tour of the building.  The building was in shambles.

At the same time of the listing, I had a huge 8’X30′ banner made and put on the building.  I purposely list a Dallas phone number that would forward to my cell phone. (see picture below)  I also found out that LoopNet.com also places my ad with several other online search engines sort of like Indeed.com does for employment which generated even more calls.

Of all things old-fashioned, a plumber drove by, saw the sign, and called me for a tour.  It was a couple in their mid-30s with a fleet of 40 plumbing trucks.  They wanted the place to not only work on their own vehicles, but they needed PLENTY of parking. (Which we had)  The sign had only been up for a week and I was surprised.  A few days after the first tour, he called for a second tour.  It was the tour where he gave me an offer of $2.2M.  I was desperate to sell so I negotiated a $2.3M sale price.  It was 3X what paid for the building just 7 years prior and over twice its appraised value.  I had hit a home run.  Lucky me.

So, my advice is to follow just what I did in this story.  The sale could have gone either way; LoopNet or a sign.  I designed the sign myself in Adobe Illustrator anId found a sign guy to make, install, and remove the sign. (Image below)  I had a lot of pictures of both before and after the shop was stripped; mostly after, that I listed online along with a video of back when we were in the building.  Here’s a link to the pictures:…    Certified Transmissions Draper, Utah

I’ve posted this a couple of times before, but here it is again.  The video of the exterior of the building.  Notice it has a double fence on the property.  https://youtu.be/V89FJzM7KCg  1:07  Lastly, follow the 10 Rules For Selling Your Shop which I posted a few days ago.  May you have the same success that I did!

 

[Joe Marconi]

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[Transmission Repair]

Like I said earlier, I chose not to use a broker.  We are a transmission repair shop with no G/R.  I contacted my 3 biggest transmission shop competitors in our market area.  The Aamco owner came in and said all I had to sell was 4 walls, a roof, and shop equipment.  He never made an offer.  The other shop owner had 3 locations and just flat out told me he wasn't interested.  The 3rd shop owner was a multi-store owner with 5 locations.  He once had 10 locations but was down to 5.  From the time I let him know we were selling to getting the cash in my hand was an amazingly short 6 weeks.  Lucky me, huh? 🙂

In May of 2015, he signed the paperwork for a 10-year lease.  Unlike you, Joe, I didn't do all the due diligence like you did.  The guy went broke and was consistently late in rent, sometimes getting 2 and 3 months behind.  He skipped out after 5 years, then I sold the real estate.  Believe it or not, it was a blessing in disguise.  If he was still in the building, my wife and I couldn't have really afforded to fully retire until 2025. 😞

 

[Joe Marconi]

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