Optical Communications Products, Inc.

Woodland Hills, CA
148,000 RSF

Cresa Los Angeles

 

Client Objectives

Optical Communications Products (OCP) occupied a 148,000 RSF owned building in Woodland Hills, CA that served as its corporate headquarters and was also used for R&D and light assembly and manufacturing of optical components. As part of a corporate restructure, OCP was looking for ways to raise capital and reduce its operating costs. Part of the restructure called for OCP to move most of its manufacturing to China. By moving manufacturing off shore, it reduced OCP's need to occupy the entire building, prompting the decision to sell the building and restructure into a smaller facility.

Cresa was retained to sell the building and structure a short-term lease back. This allowed OCP to realize a profit from the sale and at the same time significantly reduce operating costs.

Result

Cresa took the building to market un-priced and received 14 valid offers from qualified buyers. Next, they selected six finalists and conducted qualifying interviews with the client. From that list, Cresa solicited best and final offers from three parties. The sales team selected the most qualified buyer and entered into non-contingent escrow with a non-refundable deposit. By eliminating all contingencies in advance, they were able to expedite the sales process as well as mitigate many issues that affect a typical sale of this magnitude. As a result, Cresa closed the sale at $28 million, which was four million dollars over the appraised value.

This transaction was successfully completed during the fourth quarter of 2007 when financing investment sales became very difficult. While this transaction was not without its difficulties, Cresa worked very closely with OCP’s management team as well as the buyer, and they were able to keep all parties on track and completed the project within the expected time frame.