A fully-leased investment property, the offering included a 4,500 SF dental office building on a 10,000 SF NC3-55’ lot with outstanding visibility and an abundance of surface parking. The offering entailed a well-performing dental clinic with a lease in place through 2031, providing stable cash flow in an area with consistently rising land values. In 2019 the Ownership began strategizing on how to create liquidity within their portfolio and engaged Jason Rosauer, Rob Anderson, and Kristyn Krueger (the Kidder Mathews Team) to provide guidance on how to best maximize the value of this asset and eventually market the property for sale.
The Ballard Dental Arts building has long been utilized for dental practices, with the ownership operating their own dental practice in the building . Upon retiring, the ownership sold their practice to the current tenant, who owns several other practices in the Puget Sound region, and executed a longer-term lease. Shortly after, the property underwent significant renovations, and the incoming dental practice yielded tremendous benefit by the fast growing and heavily densifying Ballard submarket. In late 2019, the ownership selected Kidder Mathews as its exclusive representative in marketing the property for sale. The offering was positioned as a stable investment property with a strong tenant, and the potential for future development with a large 10,000 SF lot on a highly trafficked corner in downtown Ballard.
This highly desirous offering was straightforward with a relatively clean title report, no evidence of environmental contamination, and a strong tenant in place. As offers started to come in from prospective purchasers, Covid-19 shocked the area’s economy with the Washington State Governor issuing stay at home orders and requiring all elective (including dental) surgeries to stop in efforts to help minimize the dangers of the pandemic.
The team’s aggressive marketing campaign and hands-on approach with the ownership allowed the selling side the opportunity to intensively qualify and eventually choose the future buyer. This effort proved highly successful, as the Kidder Mathews team, ownership, tenant, and buyer all worked very closely through March and April of 2020 to overcome the short-term issues resulting from Covid-19. The result was a strong price and quick closing and a buyer confident of their future cash-flow with an asset extremely well-positioned for long term future growth.