In our search for undervalued real estate, we recently made an offer to purchase
a 218,000 square foot mill. It had been on the market for more than $2
million. We offered $180,000 and started a bidding war.
The closed mill, located in the Charlotte Metro area, had interesting elements. Although just off the "main drag", the location was very near shopping, hospital, and interestate exit. It had 14' plus ceiling heights and extensive hardwood flooring. The basic structure was sound.
When making the low offer, the Listing Broker had told us that, since the mill was "severely discounted at $2 million", there was "no way" the seller would take close to $180,000. An hour later, the broker sent an e-mail indicating that they seller would consider "around $200,000" if the deal would close quick (within a week). We scheduled a tour of the property for the next day. The broker, being true to his fiduciary responsibility to the Seller, alerted other interested parties. During our tour, we found more than 5 groups of prospective buyers pouring over the property. A bidding war ensued, with each buyer giving their "best offer". The mill sold for $235,000 and closed 10 days later.
While we were disappointed to miss this incredible opportunity, we were pleased to assist an owner in getting a property sold that was sitting idle. And, it encouraged us to make more offers that are "lower than anyone would have the audacity to offer" as we search for more undervalued opportunities.
