When managing industrial surplus holdings and assets, the process of disposition requires as much strategy and foresight as the initial evaluation. From marketing to buyer selection, each step must align with the seller’s objectives to ensure the best possible outcome. Whether the goal is to maximize value, streamline the transaction, or navigate complexities, choosing the right approach and partners is key.

Building on the insights from Part 1, which explored evaluating surplus assets and conducting due diligence, we now examine the strategies and partnerships that drive successful transactions.

We’ll continue to reference Colliers’ recent disposition of United States Steel Corporation’s Keystone Industrial Port Complex (KIPC) in Fairless Hills, PA. This 1,800-acre site, with its 70+ year industrial history, highlights the importance of targeted marketing, buyer selection, and addressing transaction hurdles upfront.

Addressing Challenges Upfront

Legacy environmental conditions often present significant challenges during industrial dispositions. Through the efforts of the seller, as well as federal and state environmental agencies, KIPC is considered one of the country’s most successful brownfield redevelopment sites.    

To mitigate transactional risk, Colliers worked with the seller to clearly communicate environmental expectations to buyers during pre-marketing and marketing. This “go ugly early” approach—tackling the most challenging aspects of the transaction upfront—proved essential.

By addressing dealbreakers early, it reduces uncertainty and bolsters alignment between buyer and seller through the disposition process. It is critical to remember that while transactions are “arms-length,” brownfield sales require a true partnership between Buyer and Seller which will last long after closing.

Targeted Marketing for Complex Sites

For properties with unique characteristics—such as legacy environmental conditions or extensive infrastructure—disposition may require a more focused marketing approach. These sites typically attract a smaller, specialized buyer pool, and a targeted marketing strategy ensures the property is presented to the right audience, saving time and improving the likelihood of a successful transaction.

At KIPC, Colliers and the seller identified and vetted prospective buyers before marketing even began. This approach ensured that only qualified buyers with the expertise to navigate the site’s complexities received marketing materials, including a seller-approved Non-Disclosure Agreement (NDA). To further maximize exposure, the marketing process allowed for an extended evaluation period. During this time, prospective buyers had access to an Offering Memorandum and introductory diligence information, enabling thorough evaluations.

Leveraging Competitive Bid Processes for Simpler Properties

Not all dispositions require targeted strategies. Properties with less complexity offer the opportunity to maximize value through a competitive bid process. A broader outreach strategy can attract multiple qualified buyers, generating interest and competitive offers. This is ideal for sellers seeking the best possible terms and conditions in a streamlined timeframe.

For the KIPC transaction, however, complexity dictated a more selective approach. First-round offers were evaluated using a detailed matrix. A structured analysis helped the seller identify the most qualified buyers to move into a second round of negotiations, where offers were recast to align with seller priorities.

Building Partnerships, Not Transactions with Buyer Selection

While multiple factors go into a successful disposition of surplus property, none is more important than selecting the right buyer. This is why our team has strong focus on the “intent” of the transaction – top of market pricing, minimal risk, liability transfer, etc.

During buyer interviews for the KIPC site, Colliers facilitated direct conversations between prospective buyers and the seller’s internal teams, including environmental and legal experts. These sessions were pivotal for assessing each buyer’s understanding of the property’s unique challenges. Even with thorough pre-marketing diligence, unanticipated issues can arise. During the KIPC transaction, both parties worked collaboratively to address challenges, illustrating the importance of flexibility and partnership.

A proactive mindset is essential when dealing with complex disposition transactions. Addressing significant hurdles—such as zoning restrictions, environmental liabilities, or financing constraints—early in the process can prevent delays and ensure a mutually beneficial outcome for the buyer and the seller.