ABOUT THE CLIENT AND THE PROJECT
We represented a national residential real estate company looking for an office building in downtown Manhattan Beach. They had footholds in most of the South Bay; on Sepulveda on the eastern side of Manhattan Beach, in Hermosa Beach, Redondo Beach, and Palos Verdes but lacked a presence in the very affluent and very dense market of Downtown Manhattan Beach adjacent to the water. The project was tied up in litigation with a potential buyer for over a year. We patiently tracked with the Seller to be ready to make a “quick close” offer once the litigation was resolved.
A 4,300 square foot, two story building located on a 2,900 square foot lot with subterranean parking and ocean views.
The original buyer had tied the property up “off market” and got into a dispute with Seller during escrow which caused a lengthy litigation battle. A small group of brokers heard about the deal and submitted back-up offers. During this litigation period we developed a strong relationship with the Seller giving him market information and speaking to him regularly. When it was time to submit offers we garnered enough information to make a really strong offer with a 15 day contingency. During the offer stage, we had already started the appraisal process, the loan process, and the due diligence process so we could close as soon as we secured the deal.
We would not have been chosen as the buyer if we had not developed such a strong relationship with the seller and we had not given him very important market information. Through this relationship we also were able to determine where the seller needed to be on price and what terms were important to him during the escrow period. We also took a calculated risk starting the due diligence before we were chosen as the buyer. However, it showed our commitment to the project and also gave him comfort knowing we would have such a short contingency period since we began the process early. The Buyer is very pleased with the purchase because this property is one of the first buildings you see as you drive into downtown Manhattan Beach from the north given their company very prominent market visibility as people drive into town.