Corporate Property Portfolios
- Client: CF Motor Freight, CNF Transportation, Inc. and United States Freightways
- Goal: Optimization Of Surplus Property Portfolios
- Size: 155 Transactions (29 States)
- Transaction Value: $125,000,000
- Expertise: Disposition, Leasing, Portfolio Management and Optimization
The Assignment
As economies change, less than truckload (LTL) motor freight companies are sometimes forced to consolidate and change trucking routes. This creates a need to sell off surplus properties and/or lease them until a future need is identified. The real estate portfolios of these companies often represent the largest share of their value and capital assets. Their location and size are also essential to the operation and profitability of their freight business.
At the turn of the century the motor freight industry experienced one of these economic cycles. We were called in to manage and optimize the properties in three different portfolios that were being designated as surplus. Since the properties were located throughout the nation, and to help facilitate the nationwide transactions into a single coordinated effort, we created a group of industry professionals to act as our local brokers in the states where the properties where situated. This was the genesis of the Transportation Property Network (TPN) that later served us well in the bankruptcy liquidation of Consolidated Freightways (Case Study – Consolidated Freightways).
To best optimize the value of the portfolios, we first analyzed and identified those properties that needed to be retained for future use by each carrier. Our goal was to minimize holding costs by leasing to other companies in the interim. We then identified other motor freight carriers that would have a geographic need for these facilities and contacted their leasing departments. Since motor freight terminals and their somewhat large yards can also serve other industrial uses, we also contacted the alternative users in the area. We implemented the same strategy for those properties deemed to be liquidated.
Within the course of two and a half years we completed 155 transactions spanned over 29 states generating $125,000,000 of revenue from the asset sales and leases.
Please feel free to contact us if you would like to further discuss this project or any of your real estate needs (425) 557-9260.