Huge Auto Auction Company Copart Pays $18 Million to Local Long Term Family Owners
I have been working with the Mitchell family who owned a key 32-acre industrial site on North Columbia Blvd. for over 15 years. This site had been in the family since the 1960’s and was part of a family owned trucking company started by their fathers in 1937. They were hauling logs to become a pre-eminent full load irregular hauler of all sorts of products with the company being sold in 1977.
Smartly holding on to some of the former real estate, I had assisted the managing partner of the family property, Gibb Mitchell, with advice; input on the market, property values and rents; finding tenants and more. As the family members have grown older and wanting logically to go their separate ways and reduce the time and hassle of managing an older industrial property, with multiple tenants and uses, a sale became more realistic and opportune in 2017. Knowing the land rush and value appreciation of industrial property occurring in the market, I was able to
transmit that there was no better time to look for a buyer for a large industrial site in Portland. Portland coming out of the last recession has seen a huge uptick in industrial development with over 300 acres trading
hands with doubled industrial and prices, and much of this building was in the Columbia Corridor where the Mitchell Brothers property was located.
After approaching their fast growing neighbor, Malarkey Roofing who passed on an acquisition, we went to market at a very aggressive value at $8 million over a recent appraisal knowing the industrial land market was red hot and these types of sites where hugely desirable “unicorns”. Receiving seven offers with several very close in value, we approached the best and more capable proposals with submitting a “Final and Best” offer which produced an increase in value of over $1.5 million over the previous offers. This is where the hard work began as the $20 billion publically traded buyer wanted to use the property, so they thus demanded the property be vacant at closing. With over eight somewhat oddball tenants and one large one being there for over 30 years, it took lots of negotiation and up to a year
to get the property vacated.
In parallel to that, substantial environmental work including a Pre-Purchaser agreement with the DEQ and planning with the city had to be worked through to finally get to closing over 16 months (5 PSA extensions) at a price of $18 million ($14.50 psf on usable acreage) with the largest auto auction company in the world; Copart. Everyone is happy…the Mitchell family got a price unthinkable only a few years ago and fast growing Copart Inc. got a rare and well located large industrial site to expand their Portland operations.
“I have worked with Todd for over 15 years. Without Todd’s help on our team and understanding of the industrial commercial real estate market, I doubt we would have had the perseverance or knowledge to close the sale at a very good price. It has been a great experience for me working with Todd on the successful sale of our family property”Gibb Mitchell; Managing Partner of MB Terminal Company