PALM BEACH—Lainhart & Potter was facing a bankruptcy court order to auction its properties in West Palm Beach and Jupiter. An auction would have left the building supply company with pennies on the dollar of its property value—not enough to pay off its creditors.

In a creative deal to drive value from the assets, Reichel Realty & Investments stepped in with an aggressive marketing strategy to broker a $2.8 million cash sale of the properties, as well as the furniture and equipment. Reichel Realty president Bill Reichel and senior associate Ken Duke got the deals done in less than 30 days.

With all due diligence completed up front, Reichel and Duke found a buyer looking to expand its Florida presence—Marjam Supply Company, a Brooklyn, NY-based building supply company with locations in 12 states across East.

“It was part of the strategy to go after similar companies but it was a coincidence that Marjam Supply, a New York-based firm, had decided to enter the West Palm Beach MSA,” Reichel tells GlobeSt.com. “The property sold as a result of a personal contact with an employee of Marjam Supply. The initial contact was from the property sign.”

Reichel’s team fast-tracked the sale within 30 days, giving Marjam the opportunity to open the 50,000-square-foot store at 713-714-715 25th Street in West Palm Beach the morning after Lainhart & Potter closed it. The transaction also included 2.35 acres of excess land at the West Palm Beach location, plus Lainhart & Potter’s 6,000-square-foot building on approximately 1.5 acres at 100 Old Dixie Highway in Jupiter.

“There was a significant time constraint since a contract for auction services had been ordered by the bankruptcy court,” Reichel says. “The biggest timing issue was to get the property under contract with all parties and closed prior to the auction date.”

Lainhart & Potter’s business in West Palm Beach dated back to 1893. Reichel says the firm was determined to ensure all its creditors were paid. Achieving a sale instead of auction maximized value, while bringing a major player in the building supply industry to the local market and preserving much-needed jobs in the areas they serve.

“The initial challenge was the price structure,” Reichel says. “It took significant negotiation to get the parties to agree to the final purchase price. We overcame the challenge with persistence and a logical explanation to the parties about the issues and risks with auctions and the bankruptcy court.”