$11 MILLION

CHALLENGE

With a long-time reputation for being one of the most respected developers in the Memphis market, Clark & Clark developed most of the office market in this premier city block in an affluent East Memphis area. The multi-generational family business decided to exit office investment as a strategic decision for long-term wealth planning. Clark Centre, two identical buildings totaling 82,361 SF with a 92% occupancy rate, was the last remaining office  asset they needed to exit for capital redeployment elsewhere. The assethad long-term tenancy from staple Memphis businesses with local credit. Clark & Clark had no debt on the asset, but the major pressure came from the question of: When is the best time to sell to maximize proceeds? The economic cycle had been on an eight-year run of growth which paralleled appreciation in the office investment market. Clark Centre’s largest and most tenured tenant recently renewed their lease. The tenant’s space was set to be completely renovated.

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ACTION

Clark & Clark consulted with Landon Williams and his investment team to better understand the data surrounding the decision of timing for the disposition. Landon’s team produced market data to help understand timing based on the capital markets. The indication was the time to sell was immediate.  Due to the strength of Clark & Clark’s long-term relationships with the tenants, the family’s desire for the next owner was to treat the tenants with the same level of respect and care they had for decades. Landon handpicked a shortlist of investors who would be aggressive in pricing and, equally important, high-quality landlords in the future. Through that process, a quiet but competitive market helped drive the value for the disposition and allowed the Clark family to exit the investment before the completion of the major tenant’s space renovation. Landon’s team provided Clark & Clark with confidence on disposition timing, valuation, and process.