Challenge
The property was a 33,225 SF industrial/flex building with a unique layout: a 21,000 SF footprint and a 12,225 SF mezzanine level. While the warehouse boasted 26’ clear height, the mezzanine limited usability for most buyers. The building showed poorly on the exterior but had character and functional office space inside. The seller no longer needed the building due to changes in business strategy and wanted to focus on their core priorities—publishing and organizing PAX, the world’s largest video game conference. The biggest hurdle was finding a buyer who saw value in the mezzanine or could creatively adapt the space without triggering costly code upgrades.
Action
Aaron Kraft positioned the building to highlight its strengths—turnkey office space, local distribution functionality, and excellent truck maneuverability. While the property stayed on the market longer than anticipated, he generated activity from both traditional users and a religious organization considering a change of use. He used the interest from the latter to create leverage with Terreno, ultimately securing a 29% increase from their original offer. Throughout the process, Aaron guided the seller through each decision, brought in third-party experts to validate concerns, and maintained clear, consistent communication with all parties.
Result
The building sold to Terreno for $9.3M ($280/SF overall; $352/SF on the final retained shell after mezzanine removal). Aaron was also able to negotiate a 3-month sale leaseback at $0.00/SF, NNN, easing the transition and providing operational flexibility for the seller.