NORTHBROOK, Ill., November 21, 2022 /PRNewswire/ — Hilco Real Estate, LLC, (HRE) has been selected through a competitive process by Alamo Dynamic, LLC, a private equity-backed food producer, to monetize a turnkey cold storage facility in hand, USDA certified, located at Lubbock, TX. The property consisted of 224,000 ± SF spread over five buildings spread over 16.38 sprawling acres.
The pandemic took its toll on the business, as Dynamic Foods’ main contract partner, Furr’s Fresh Buffet, filed for bankruptcy in the spring of 2021. Without that partnership, the facility was operating at only around 20% capacity. , which led to the owner’s decision. to sell the facility and all of its associated assets.
Due to the property’s tertiary location, the facility’s existing specialist construction, environmental challenges and a tight timeline, the seller was unsure of the ultimate recovery a sale process could bring. .
HRE immediately implemented a targeted national marketing campaign which, in just under three months, garnered over 80 direct inquiries from sophisticated buyers (many of whom were end users), nine circuits with well-qualified groups and three viable offers. HRE conducted a multi-stage competitive bidding process in which the final price exceeded $17,000,000well above the initially planned sale price.
During the due diligence period, the buyers encountered an unknown environmental issue that may delay closing. Hilco Global’s institutional knowledge of mitigating environmentally threatened properties has proven invaluable. The team developed a unique phased close strategy to meet the seller’s need for a quick sale and the buyer’s desire to begin upgrading the facility within a specific time frame. The phased closure plan also allowed the seller to responsibly address ongoing remedial actions before transferring the affected parcel to the new buyer.
Chet EvansVice President of Hilco Real Estate, said of the sale, “We are delighted that the sale allows the buyer to use the highly sought-after cold storage component of the facility and, more importantly, to creating jobs in the area, many of which were lost when the previous operator closed. Simultaneously, our strategic selling process enabled the seller to maximize property value, limit typical time and costs conventional sales processes and thoughtfully addressing environmental barriers that might otherwise have thwarted the sale.”
For more information on how Hilco Real Estate brought our quick approach to value to this successful sale, visit property case study page. To view other industry listings active with Hilco Real Estate, please visit our website.
About Hilco Real Estate: Hilco Real Estate, LLC (“HRE”), a unit of Hilco Globalhas its headquarters at Northbrook, Ill.. HRE is a national provider of expedited real estate disposition services for businesses, lenders, managers, receivers, bankruptcy attorneys, estates, private landlords, investment companies as well as local government agencies , state and federal. Acting as agent or principal, HRE applies its extensive experience to advise and execute strategies, helping healthy and struggling clients extract maximum value from their real estate assets. By leveraging multi-faceted sales strategies and techniques, aggressive repositioning and restructuring experience, a large, motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations. , even in the most complex transactions.
SOURCE Hilco Real Estate
