Eastern Companies, a prominent construction company in the Southeast, sought to refine their real estate strategy to capitalize on current market conditions. Through trusted relationships, Scotland Wright Associates (SWA) was brought in to provide expert evaluation and strategic advice. SWA's mission was to identify lucrative investment opportunities that aligned with Eastern Companies' growth objectives and investment criteria.

Client’s Challenge:

Eastern Companies was previously occupying less than a full floor of office space and had ambitions to significantly expand their real estate holdings. They sought to buy an entire building, a move that would increase their space and position them for future growth. The challenge lay in determining whether this was a feasible and strategic option. They needed to evaluate if purchasing a building was financially viable, if it aligned with their long-term goals, and if it could be acquired under favorable market conditions.

SWA's Approach:

SWA’s team of Nathan Williams and Michael Tucker leveraged their extensive local market knowledge and relationships to identify off-market opportunities that were not widely advertised. This proactive approach enabled Eastern Companies to explore options that were otherwise unavailable to the broader market. SWA's comprehensive process included:

Market Analysis & Underwriting:

a. SWA conducted thorough due diligence on identified properties, including detailed market analysis and underwriting.

b. They compiled all relevant market information and comparable sales data to help Eastern Companies assess the viability and profitability of each potential investment.

Negotiation & Acquisition:

a. SWA negotiated aggressively on behalf of Eastern Companies, securing a purchase price significantly below market value.

b. The final negotiated price was 25% below the purchase price from 2020 and 80% below the replacement cost of the building.

c. Flexible due diligence terms were negotiated to ensure Eastern Companies had ample time to evaluate the investment thoroughly without undue pressure.

Outcome:

a. Eastern Companies successfully acquired an income-producing asset that was ideal for an owner-investor.

b. The building was purchased well below market price, providing immediate value and long-term growth potential.

c. The strategic acquisition allowed Eastern Companies to leverage an underutilized space, with plans for future tenant expansion and increased cash flow.

This case exemplifies how Scotland Wright Associates' expertise and strategic approach enabled Eastern Companies to navigate a complex real estate market, securing a highly advantageous investment opportunity. Through meticulous planning, market insight, and skilled negotiation, SWA delivered a solution that met and exceeded Eastern Companies' expectations.

If you’d like to talk about the real estate strategy for your business and how to leverage today’s market, call us today.