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May have to trim price on North Coast building, Valpo redevelopment panel told

Updated: May 16, 2013 6:07AM



VALPARAISO — The Valparaiso Redevelopment Commission will not likely recoup the $4 million it paid for the old North Coast Distributing building unless it’s willing to sit on it for a while.

“If you want to get your price, it’s going to take time; if you want to move it, you’ve got to lower your price,” commercial real estate broker Chris Gary said Wednesday, summing up his presentation to Redevelopment Commission members.

In the more than 17 months the building at 705 Silhavy Road has been on the market, it’s gotten 14 inquiries.

“We’ve had one offer, and it was a subpar offer,” said Gary, who is vice president with the industrial services group of NAI Hiffman out of Oakbrook Terrace, Ill.

One prospective buyer rejected it because of the water distribution, and another wasn’t ready to move.

Much of the lack of buyers has to do with the recession from 2008 to 2011, and where Gary used to sell five industrial buildings a year, he sold none in those years.

Buyers still believe it’s their market, so they’re making low offers, Gary said.

There’s also the reality that the building is set up for a beverage distributor with a lot of office space, a truck repair facility and a large cooler, and beer distributors are restricted geographically by state law.

It’s also 10 miles from an expressway and on the edge of the Chicago market.

However, it’s one of the few buildings in Northwest Indiana with 100,000 square feet or more, and the financial climate is improving for this kind of real estate, he said.

He estimated it should sell for $2.5 to $3 million instead of the $3.9 million asking price.

The commission members voted to retain him as real estate broker but also want an open house for other brokers to see it.

The Redevelopment Commission bought the building to keep North Coast — now known as Indiana Beverage — in the city and moving to a new facility on Indiana 49, south of U.S. 30.

However, the reasons to both buy and sell it soon have more to do with retaining and bringing businesses to the city, Redevelopment Commission Executive Director Stu Summers said.

“Everyone on the commission is anxious to bring more jobs to the community,” Summers said.



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