DUE DILIGENCE PAYS OFF

28 Rawson Ave. Barrie ON, L4N 6E7

Our client was engaged in a bid for the recycling contract for the City of Barrie. To demonstrate viability for the bidding process, they required industrial land on which to set up their operations. The right site needed to satisfy multiple requirements, both within the criteria of the bid process as well as key principles held by our client.  

For example, even if the site was technically zoned to accommodate operations, the client did not wish to be too close to residential areas. The company knew and respected that residents would not appreciate large trucks driving through their neighbourhoods. This commitment to good business practices symbiotic with the city set the tone for our search.  

Several search options ensued, from a Plan A, B, C, and all the way to a Plan D. It began with negotiating a deal on a leasing option in town on Tiffin St., which later pivoted into a more serious purchase discussion. As it happened, the plot of land was simply not large enough. 

In preparing their contract bid with the city, the client needed to have a property at least conditionally accepted. With a tight timeline driving the search, Maven was able to negotiate and secure a conditional offer on a different property also located on Tiffin St. within one day. And yet, upon conducting extensive due diligence, the property turned out to present severe environmental concerns. Another option was needed. 

Multiple MLS searches on both Barrie and Toronto Real Estate Board listings followed. Nothing fit the criteria. By leveraging the Maven Sales team, an off-market opportunity was scouted with the property at on Rawson Ave.  

It was a good fit, so Maven secured a conditional offer to purchase. The asking price was $4 million. Maven went in with a price point of $3 million. The property had a Heritage Designation, and so extensive due diligence on the viability of the property followed. This required sifting through multiple bylaws, and meetings with both the City of Barrie Planning Department and the Lake Simcoe Regional Conservation Authority.  

Given the City’s delayed response to the contract bid, Maven managed to secure an additional 75 days on the conditional 90-day period to allow for proper due diligence. This was essential to protect the client. With insights provided by multiple geotechnical surveys, environmental consultants, and professional planners, it became apparent that the usable space on the property was significantly less than the total acreage.  

It was time to negotiate that price point again. We dropped it down an additional $800,000 to $2,200,000—a reduction of $1.8M from asking. At this new price point, the client was now comfortable removing their conditions and securing the purchase before hearing back from the city on the success or failure of the recycling operations bid.  

Backup options were also secured, in the event the Rawson property did not reach firm. A listing in Hillsdale was considered, along with alternatives at another Tiffin St. property. We viewed and submitted an offer on another vacant lot that already had a competing offer. There, Maven was able to negotiate to the point of reducing their price point down $600,000, provided our client would remove all conditions. However, in the interest of the client, and with no guarantee the property could be rezoned for their intended operations, we let it go. 

All told, we submitted offers on 5 different properties, reaching conditional acceptance on 3 of them. For each prospective location, Maven performed deep and proper due diligence, navigating the client away from potential costly pitfalls such as rezoning challenges and risks of environmental contamination.  

The final outcome of Maven’s extensive and client-focused search? The purchased property was negotiated down from $4 million to $2.2 million. The client was thrilled with Maven’s service, assistance with due diligence, the provision of consultant recommendations, help navigating the city bylaws, and providing contextualized, useful information on alternative site options.  

Protecting our clients with due diligence is an important part of the Maven process.