Koll Savi Ranch

Koll Savi Ranch is a 48,895 square foot Class B, multitenant office building. The property was put into receivership in 2019 after the anchor tenant (who was also the borrower) went bankrupt and vacated the property.

Objective & Challenges

The objective was to work with the receiver and outside leasing brokers to backfill the vacancy then position the asset for disposition. The assignment presented numerous challenges including a bankrupt sponsor, deferred maintenance, high vacancy, near term rollover, a 1031 exchange, and financing difficulties in addition to having a receiver, special servicer and numerous attorneys involved. The project required Kidder Mathews to quarterback all the different players involved and understand their disparate interests, all the while maximizing value for the client.

Process & Strategy

It was determined, based on unanchored After Kidder Mathews was able to increase occupancy, we ran a traditional disposition process with a 45 day marketing campaign. In order to push pricing we widely exposed the opportunity to Kidder Mathews agents and outside brokers in the western US. Those marketing efforts were coupled with a robust advertising campaign in industry and local publications and direct exposure to over 5,000 investors that resulted in buyer competition for the deal center “cap rate” strategy or value-add/redevelopment buyer pool.

Results

The competitive bidding process generated 12 qualified offers and invited four investors to participate in a best-and-final round. Ultimately the seller chose an all cash buyer in a 1031 exchange who we were able to source through a Kidder Mathews agent in our San Francisco office. The 1031 exchange presented additional challenges because the receivership was at the mercy of the courts and the buyer had 1031 deadlines to hit.