High net worth national client was desirous of selling a leased asset to a major public Florida university. The university was desirous of purchasing the asset because it was located on a key parcel at the entrance to the university campus and they wanted to integrate the parcel into the campus. The challenge facing the parties was that the seller wanted to be compensated for future revenues and the buyer needed to account for the fact that the property would not be able to be put into production for a period of 8 years. The parties were also facing soft local real estate market conditions.
Through the use of sophisticated financial modeling and a full understanding of the underlying land value and trends in the primary market area Walter Duke + Partners provided innovative valuation solutions so that all parties could achieve desired results.
The acquisition allowed the university to acquire the asset and incorporate the property into the overall campus plan and the seller was able to divest of the asset while capturing some of the future revenue. After a grueling all-day session of intense negotiations all sides left gained a better understanding of the deal and the results were satisfactory to all participants thanks in part to critical counseling and valuation by Walter Duke + Partners.