Broker Wrings Extra Value From REO

ATLANTA—REO transactions are more rare these days, but brokers are still working to extract maximum value for buyers. A freestanding express carwash in Woodstock, GA is a prime example.

Franklin Street Real Estate Services brokered the sale of the 3,992-square-foot freestanding express car wash located on Highway 92 in Woodstock. The seller is a local bank. Franklin Street's Mac McCall represented the buyer, a car wash operator out of Alabama. Despite being a bank-owned property, the car wash was fully operational at the time of sale.

“Although my buyer offered a much higher price than the one the lender accepted, we found out that there was a tenant Right of First Refusal in the lease and approached the tenant about purchasing the property from them,” McCall tells GlobeSt.com. “By doing so, my client was able to get the property and the tenant was able to pocket extra capital.”

The Right of First Refusal wasn't apparent on the surface. McCall drilled deeper into the property to uncover this X factor and help its buyer seal the deal. McCall says the property was a good value for an express car wash at a premier location.

“There were tremendous challenges in getting this deal done,” he says. “We essentially had three parties involved plus the buyer's lender. Then it was discovered there was some environmental challenges that we had to get around and finish all of our work prior to the scheduled closing date. It was a time-intensive brokerage process but luckily everybody got what they wanted.”