Northwest Demolition is in a somewhat unique position to evaluate, orchestrate, and implement the tasks required for the successful redevelopment of distressed properties.
Distressed properties are ones with environmental concerns, or where site improvements (e.g., buildings) are underutilized and in poor repair.
Our customers are frequently looking to sell these properties following demolition and/or environmental remediation efforts. Thus, at times, we have been able to offer to purchase the sites prior to the site work enabling them to get their capital immediately back into use. The services included in this discipline are:
- Purchasing sites outright allowing owners to take the raised capital out of the property sites
- Teaming with ownership groups to provide technical services for a portion of future development revenues
- Consulting services providing options for technical solutions with the associated cost analyses
- Demolition and/or environmental remediation field efforts for fee
Example Distressed Property Redevelopment Projects
Saw Mill Property
Property was purchased by Northwest Demolition in a public auction. The purchase included the full assets of an operational sawmill including many buildings and 66 acres of property.
The mill could not be restarted, thus the following steps are taken in the redevelopment:
- International marketing and liquidation of assets
- Demolition of remaining structures with recycling of metals and timber
- Marketing of real estate for lease and purchase
- Remediation of certain environmental issues
Hospital Site Property
Northwest Demolition purchased the property from a bank following a bankruptcy. This property consists of 100 acres, 50 acres of which are rural farm land and 50 acres are able to be developed as housing. The steps to redevelop include: demolition of the 90,000 square foot main structure and the dozen smaller auxiliary structures, minor environmental remediation, marketing and subsequent sale of the property to a national house builder.
Mini Storage Property
This property was purchased by Northwest Demolition out of bankruptcy. The property measures 20 acres and is located on the outskirts of a rapidly developing residential community. The property was a poorly managed mini-storage facility. A portion of the infrastructure was removed, a professional manager was retained and the site improved with additional capacity of units being constructed. Today the site is a successful mid-size mini-storage facility.
Foundry Site Property
Northwest Demolition purchased this property in an auction following a bankruptcy. It consists of nine acres of industrial property, with excellent freeway access and rail access, located 20 minutes from a mid-size West Coast city. The buildings on the site were demolished and, under an agreement with the state environmental agency, remediation efforts were conducted and a no further action letter was received. The property has been leased to various tenants and continues to receive interest from the local development community.