GG’s Restaurant on McLoughlin Boulevard has been a longtime staple in the Milwaukie community. The couple who have owned and operated the restaurant for over 50 years was ready to sell the property and retire.
In addition to the restaurant, the one-acre property included several buildings that housed businesses on month-to-month leases. Being located in Milwaukie’s flexible zoning district, the value of the land exceeded the value of the buildings so the approach was to find a buyer interested in the development opportunity. This iconic corner property offers a wide variety of possibilities due to its location at a busy intersection and the property’s four access points which provides excellent visibility and signage.
Having received multiple offers at asking price, the buyer, a developer specializing in medical office, was selected and the closing process began. Shortly thereafter the pandemic put its grip on Portland and due to economic uncertainty, banks became hesitant on lending. During this time Macadam Forbes continually educated our client on how COVID was affecting the market. Constant communication with the buyer’s broker was key to ensure the buyer was still viable and interested.
The closing date needed to be extended several times, and at each turn Macadam Forbes secured non-refundable earnest money deposits to protect our client’s interests. Ultimately an agreement was reached for the buyer to switch from a conventionally financed deal to a seller-financed deal. The full balance of the seller financing would be paid in full within six months of closing, which allowed our client to recognize the gain in a tax-beneficial way, and allowed the buyers time to acquire proper financing to pay our client.
Our continued communication with our client as well as the buyer’s broker during the uncertainty of the pandemic was crucial. Negotiating a creative strategy for financing options kept the successful sale of our client’s property within their target and allowed them to realize their retirement goals.
"Clayton, our broker, persevered through a complicated transaction due to COVID and successfully sold our property.
We appreciated his attentiveness, professionalism and excellent knowledge. He always took our calls for the magnitude of questions that we had. We would recommend him to anyone selling commercial property." - Bill and Shannon McNerthney