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CASE STUDY

Central Rental Assesses Real Estate Footprint as Owner Approaches Retirement

 

Quick Highlights

Services Provided to Central Rental:

  • Building Valuation
  • Financial and Cost/Benefit Analysis
  • Strategy Development and Evaluation

Challenge

Butch Timo, owner of Central Rental in Fridley, MN, had owned an equipment rental business for decades, operating it with his sons.  As he neared retirement, he enlisted the help of John Young, vice president – real estate advisory, to understand the real estate value.  Given that the equipment and building were owned as one company, he wanted to consider whether to separate them or keep them together to make a sale more appealing to potential buyers. 

Strategy

Young worked with Timo to help him evaluate the value of his real estate, the time needed to sell it, and the steps necessary to get it ready to sell. Forte also evaluated the zoning of the site to make sure the new buyer could continue using it for outdoor storage.  The team provided an estimated value for the Central Rental site along with a roadmap to a sale if that was the decision and prepared a financial model showing the costs and benefits of the different approaches. Young also coordinated with the business broker who was marketing Central Rental for sale. The two worked together to provide Butch a seamless path to find a buyer for the business and real estate.

Results

After the evaluation and study of alternatives, Timo decided the best option for him was to sell the business together with the real estate to a company that would continue to operate a rental equipment business. While Forte did not earn a fee for the strategy development and valuation, Forte did help that business achieve its business goal.

 “We didn’t close a transaction, but we did help Butch come to the right conclusion for his business and his family, which is our goal.” 

John Young, CCIM | Vice President Forte Real Estate Partners

Real Estate Advisory

Our experienced advisors understand clients’ objectives, anticipate potential challenges and work hard to exceed their expectations to provide solutions based upon our client’s best interests and current market conditions.
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Philip Simonet

Philip Simonet

Principal

o: 952-854-8381 c: 612-501-3870 phil.simonet@forterep.com
John Young, CCIM

John Young, CCIM

Vice President | Real Estate Advisory

o: 952-854-5067 c: 651-216-6565 john.young@forterep.com
Joseph Schultz

Joseph Schultz

Senior Associate | Real Estate Advisory

o: 952-854-8309 c: 651-500-7988 joseph.schultz@forterep.com

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