Case Studies

Sierra Nevada Investment Management orchestrated the sale of land, which had previously been held for future development. The property did not fit with the client’s traditional investment profile, and our team was asked to assess options.

We worked with ownership to determine the client’s best use of the land. Options included, a lease, land development, an add-on acquisition of a neighboring property, use by a current portfolio company, or a sale. After a strategic analysis it was determined that the best value for the client would come from a sale. A process was conducted working alongside a third party broker team, and upon completion, the transaction netted the client a 35% ROI. 

An existing family office client acquired an aged class C industrial building outside of its target market area as part of a group of more desirable properties. Guided by strategic discussions with SNIM, a fair sale price was established with the objective of completing a 1031 exchange with the sale proceeds. 

The sale was made complex due to previously unknown historical title problems and a phase 2 environmental study that was challenged by drilling constraints among other non-typical issues. SNIM successfully addressed these issues using its assemblage of a local broker, title experts, and environmental consultants. 

With a completed sale in hand, SNIM identified in association with a local broker in the desired market area, a modern class A property that was 2.25 larger than the sold asset. The purchase price was discounted due to a complex in-place financing structure that restricted leverage as well as the building site being part of a near superfund remediation program. SNIM employed its financial engineering capabilities to arrange financing along with its environmental resources to complete the purchase and a successful 1031 exchange.

Today the replacement asset has a long-term lease with a credit tenant, is worth nearly 5 times the sales price of the prior Class C building, is grossing NNN rent at just under 6 times the prior asset, and is nearly debt-free after 10 years of ownership.