Mahi International: Navigating a Tight Market for Strategic Facility Acquisition

Client Profile:
Mahi International, renowned for designing and creating custom aquatic living spaces, has made a name for itself in the realm of specialized construction. With a focus on innovation and quality, Mahi International has become a leader in crafting unique and creative aquatic environments, catering to a niche market with specific operational needs.

Mahi International & Allies Partnership:
The partnership between Mahi International and Allies Commercial Realty was catalyzed by an urgent need for a new facility. Faced with the sudden loss of their leased warehouse, Mahi International turned to us for a swift and effective real estate solution, transitioning from leasing to owning a facility that would better serve their long-term business objectives.

Opportunity and Challenge:
Mahi International’s unique operation requirements, such as high clear height for crane operations and the need for outside storage, coupled with their preference for a standalone facility away from residential areas, presented distinct challenges. The scarcity of available properties that matched their criteria in a market with escalating prices further intensified the search.

Analysis:

Comprehensive Market Analysis: We conducted a thorough exploration of both on-market and off-market properties, ensuring no potential opportunity was overlooked.
Daily Monitoring and Broker Collaboration: To counter the low inventory levels, our team monitored new listings daily and actively engaged with other local industrial brokers to uncover every viable option.
Targeted Property Acquisition: The focus eventually narrowed to 1850 Expo Lane, a property that aligned with Mahi International’s operational needs. Our team prepared a comprehensive offer, including the real estate and additional equipment necessary for Mahi’s operation.

40,000 SF Facility in Indianapolis, IN

Our Success Stories:

Strategic Acquisition of 1850 Expo Lane:
- The journey to acquiring 1850 Expo Lane was marked by meticulous strategy and negotiation. Faced with a competitive market, our team’s expertise shone through as we navigated complex negotiations to secure this ideal property. The facility not only met the high-ceiling and spacious layout required for Mahi’s operations but also provided the secluded setting necessary for their specialized work. This acquisition, a critical move amidst escalating market prices, was a significant win for Mahi International, allowing them to secure a standalone facility that perfectly catered to their unique business needs.
Additional Equipment Acquisition:
- Recognizing the opportunity to enhance Mahi International’s operational efficiency, our team negotiated the inclusion of essential equipment in the purchase. This strategic move not only streamlined Mahi’s transition into the new space but also represented significant cost savings. The acquired equipment, including office furniture, pallet racks, a gantry crane, a fork truck, and air compressors, was integral to their manufacturing process, making this acquisition more than just a real estate transaction—it was a comprehensive solution tailored to their operational requirements.
Seller Post-Closing Arrangements:
- In a demonstration of our commitment to accommodating the needs of all parties involved, we successfully negotiated a $20,000 credit at closing. This arrangement allowed the seller additional time to vacate the property, ensuring a smooth transition and minimizing disruption to Mahi’s operations. This delicate balance of interests showcased our ability to think creatively and broker agreements that benefitted our clients beyond the immediate real estate concerns.

Results:

Seamless Transaction and Transition: From start to finish, the acquisition process was managed with a high level of professionalism and efficiency. Our team’s handling of the due diligence ensured that every aspect of the transaction was seamless, allowing Mahi International to focus on their core business without the added stress of real estate complexities.
Financial Efficiency and Operational Advantages: The successful negotiation led to a purchase price that was significantly below the market rate, a testament to our team’s negotiating prowess. Moreover, the additional equipment and post-closing arrangements provided Mahi International with operational advantages and financial benefits, setting them up for continued success in their new facility.

Conclusion:

Our work with Mahi International underscores our ability to navigate complex market challenges and meet specific client requirements. Understanding the unique nature of Mahi’s business, we provided a tailored real estate solution that not only facilitated their immediate transition but also positioned them for sustainable growth and operational efficiency. Allies Commercial Realty continues to demonstrate its commitment to delivering customized, strategic real estate solutions in challenging market conditions.

In Other Case Studies

Eckart Supply Company Inc.: Navigating Growth with Strategic Real Estate Solutions

Mahi International: Navigating a Tight Market for Strategic Facility Acquisition