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Project Outline
The subject property was designed as a 128,680 SF, grade-loaded
manufacturing facility in Woodburn, Oregon. Originally owned by
Fleetwood Homes, the property was sold to Willamette Industries and
acquired by Weyerhaeuser International Paper.
In 2004 Jeff Brooks represented Universal Forest Products (UFP), who
acquired the property to complement their existing Woodburn
manufacturing operations. Each user was in the forest products industry
and able to utilize the facility as it was designed with very little
modification. In 2008, UFP decided to sell this facility, expand their
other Woodburn site and investigate a plant expansion in the Seattle
area.
Services Provided
Due to the present state of the economy and limited local demand, the
marketing and prospect search was broadened nationally. However, the
marketing was also focused on California due to the number of prospects
and potential end user market demand.
During the marketing period a December snow and ice storm severely
damaged the St. Helens, Oregon, operations of United Pacific Forest
Products (UPFP). It was discovered that UPFP’s Oregon operations
supported Golden State Lumber, a chain of lumber supply stores in the
California Bay Area. Once the extent of damage (roof collapse) was
understood, UPFP’s parent sought a replacement facility that could be
brought online immediately. Their California head quarters quickly
identified UFP’s Woodburn facility as a possible replacement property.
After numerous discussions and review of information from afar, the
property was identified as an excellent fit and an offer was received
January 6, 2009. Negotiations were finalized, inspections made,
conditions waived, and closing occurred one month later on February 6,
2009. During this time, UFP agreed to include its dust collection
system and other special use equipment for an additional $220,000.
Total consideration was $5,470,000. UFP agreed to vacate by month’s
end, which allowed UPFP to be back online 90 days after the December
storm.
How We Added Value
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The sale brought an excellent forest
products employer to Marion County, rather than potentially move out
of state in search of a replacement facility.
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A potentially extended marketing
period was compressed into several months through aggressive
marketing and identification of a specific need.
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The 2009 $5,250,000 sale represented a
210% increase over the 2004 $2,505,000 purchase price, which greatly
assisted UFP’s cash position. The timing was excellent, as the
forest products industry was facing a challenging time.
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The sale of the Woodburn facility will
allow UFP to consolidate and expand operations into their other
Woodburn facility as well as open a new facility in the Seattle
area.
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Woodburn, Oregon
Sale Price:
$5,250,000
Parties in Transaction:
Seller:
Universal Forest Products
Buyer:
Woodburn Partners, LLC
Agent, Represented Seller:
Jeff Brooks, SIOR, CCIM
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