Fairchild Industries, a portfolio company of Berkshire Hathaway, recently closed a facility in Kent, Ohio containing 22 acres of land and 110,000 square feet of industrial buildings. The property is in a semi-rural portion of Kent, and was not ideal in terms of proximity to the interstate for many industrial users. The property had been listed on the market and was not moving.
A strategic marketing plan was created that provided an alternative redevelopment scenario other than industrial. The plan involved converting the property into a mixed-use institutional (educational, governmental, service use, community center) development.
The new strategy yielded demand from non-industrial users due to its location in a quality residential and light area of Kent. While the mixed use plan was being implemented, an industrial buyer surfaces who wanted to use the facility for tire-recycling purposes. The company negotiated a contract with the tire-recycling company to purchase the property “as-is”. However, the community and local planning authorities have not approved the required permit for a sale to take place. Other developers are looking at the mixed-use option, and the property will be sold and closed to either the tire-recycling firm or a mixed-use developer by 2012.