Successfully Selling the Unknown

This was a huge industrial warehouse constructed in the 1960s. At 412,000 square feet, there was concern that there may not be a user large enough to acquire and occupy it. It had functionally obsolete features, dimensions that rendered it difficult to subdivide into a multitenant property, and significantly more office space than usual — which, by the way, looked straight out of Mad Men. Who would use this? Better yet, who would buy it with intentions of repositioning it, and what would they be willing to pay? One party suggested it was worth land value, minus the cost of demolishing the building, rendering the property worthless in real terms.

After seeking out the Vendor, assembling the right team, competing in a competitive pitch environment, and winning the business, a new trail was about to be blazed for the future of the asset. In recent years, Ryan had seen many missed opportunities — industrial businesses staying out of the Winnipeg market for lack of large enough spaces or prohibitive construction costs. For similar reasons, he saw industrial businesses in Winnipeg looking to expand that ended up settling for their existing premises or amalgamating operations into a larger market. Despite the setbacks of the building, Ryan focused on some of its important features like ceiling height, grid spacing, loading doors, parking, excess land, and the sheer size of the space. He engaged an architect and design professional to develop drawings and renderings of how it could be utilized.

Ryan and the team successfully procured multiple offers for the building. It sold within the price range provided in the pitch and above the previously appraised value. Working with large companies can result in tricky legal agreements, and attention to the finer details can become big roadblocks in negotiations. However, Ryan possessed the expertise, patience, and professionalism to broker an amicable agreement and get the job done.

It was a significant accomplishment for the vendor and a great opportunity for the purchaser. More than that, it was a story for the community. Prior to the vendor inheriting and relocating the operations, the building was the longest continuously operational distribution centre in Winnipeg's history. Its closure resulted in the disappearance of jobs and an uncertain future for a notable building. The purchaser relocated some of their distribution operations from other provinces and established a new head office, creating employment and a productive future for the building and community.