Background
Bentley McKean’s client, Dairy Aire, LLC, held this coastal office property as a long-term investment, recognizing its underappreciated value, particularly the consistent revenue from rooftop telecom tenants. However, with below-market occupancy and a challenging submarket, finding a qualified buyer required creativity, market insight, and a unique approach to valuation and positioning.
The Problem
The client owned this asset long-term and saw hidden value in the rooftop cell tower income. However, the deal was anything but simple. Only 59.6% occupancy meant the building was producing underwhelming returns. The telecom leases created underwriting challenges for most traditional investors. Many buyers lacked the expertise to properly value wireless income, limiting interest from both institutional and local players.
The Solution
Bentley McKean knew this property needed a creative approach and two distinct buyer pitches. Bentley McKean created a bifurcated value proposition, marketing separately to value-add real estate investors and telecom-focused buyers. He ran segmented campaigns, developing tailored marketing materials that emphasized different upside angles depending on the audience. He positioned it as a hybrid, branding the property as a dual-income opportunity, one with both stable passive income and lease-up potential.
The Results
Bentley McKean structured a deal that balanced complexity, created clarity, and closed cleanly. It sold for $4,025,000, exceeding expectations by about $300,000. He generated competitive interest despite a limited pool of buyers and delivered an above-market outcome in a submarket many investors overlooked.
