The Situation
With 174 West Street in Orillia, we knew the property presented an interesting opportunity, but not without its challenges.
With 32,667 SF of space facing an upcoming lease expiry, the property could appeal to two very different types of buyers.
For an owner-occupier, the potential to take over a substantial amount of space was attractive.
For an investor, however, that same opportunity came with a considerable amount of uncertainty.
The question was:
Who would be willing to take on that uncertainty, and what would it take to get them comfortable with the investment?
The Context
The existing leases were approaching expiry, which meant a new owner would have some important decisions to make.
Would the existing tenant renew? Would they require a shorter-term extension? Or would the new owner need to find an entirely new tenant?
In a larger market, finding another tenant for 32,667 SF might be less concerning. But in a city the size of Orillia, the number of businesses of businesses are fewer.
For an investor, a prolonged vacancy could mean months of carrying costs and potentially significant leasing expenses.
For an owner-occupier, on the other hand, the possibility of vacant possession could be exactly what they were looking for.
Understanding these two different perspectives was critical to tailoring meaningful messaging to attract the right buyer.
The Challenge
Maven recognized early on that the property’s upcoming lease expiry would significantly influence how buyers evaluated the opportunity.
Rather than assume one buyer group would deliver the best result, Maven wanted to understand the depth of both markets.
The goal was to give the Seller a clear picture of the available opportunities, the risks buyers were considering, and ultimately, what the market was prepared to support.
The Action
Maven launched a marketing campaign targeting both owner-occupiers and investors.
The strategy generated interest from three separate groups, but there was a common thread.
Each group was pursuing a government contract, and their ability to move forward with purchasing the property depended on securing that contract.
While the interest was encouraging, there was no certainty that any of these groups would be in a position to proceed.
Then another buyer emerged.
This time, it was an investor who approached the opportunity differently.
Unlike the other interested parties, this investor had sufficient cash reserves to be flexible with the property’s future occupancy.
If the existing tenant renewed, that was an option.
If they stayed for a shorter period, the investor could accommodate that too.
And if the space became vacant, the investor had the financial capacity to carry the property while searching for a new tenant.
That flexibility made this buyer particularly ideal are few.
The Result
Maven was able to show the Seller just how unique this buyer’s position was.
While other parties needed a government contract to proceed, this investor had the financial strength to move forward without relying on a particular leasing outcome.
It was an opportunity worth taking seriously.
Holding the asset through an uncertain leasing period would mean accepting additional risk, with no guarantee of a better outcome.
Selling, on the other hand, would allow the owner to release capital and pursue other investment properties with the potential for stronger future performance.
The Seller recognized the opportunity, moved forward with the investor, and the transaction successfully closed.
For the Seller, the sale created an opportunity to reposition capital rather than take on the next chapter of leasing uncertainty.
For the Buyer, any cashflow was better than parked capital, that he had been used to doing up to this point.
