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2 <br /> In late October/early November 2020, the Asset Management Services Department received two <br /> unsolicited contacts from national commercial real estate firms that specialize in this industrial <br /> niche of the market. Both firms inquired as to Orange County's potential interest in selling the <br /> Builders FirstSource site and provided brokerage price opinions that placed the value of the <br /> property between $4 and $5 million dollars. This information was then shared with appropriate <br /> members of County management and a decision was made to pursue the sale of this property. <br /> The County Attorney's Office was consulted as to the process by which the County might proceed <br /> with the sale. Staff advised that the first step would be to declare the property as surplus. A review <br /> of general statutes indicated local governments can then sell surplus property by an upset bid <br /> process (G.S 160A-269). The statutes do not preclude the use of a commercial real estate <br /> brokerage firm to facilitate the sale, and it is staff's opinion that the utilization of a commercial real <br /> estate brokerage will result in the highest possible bid for the property, and in the shortest amount <br /> of time. <br /> In order to help expedite the sale process, a Request for Proposals (RFP) was issued on January <br /> 29, 2021 to seek a Real Estate Firm to market and facilitate the sale of the property. Proposals <br /> were received and reviewed on February 8, 2021. Marcus & Millichap Real Estate Investment <br /> Services was determined to be the most qualified, responsible bidder. <br /> It is proposed that the Board approve beginning the process of selling 401 Valley Forge Road, <br /> Hillsborough, NC. County staff would return to the Board to approve the sale upon receipt of the <br /> highest responsible bid at the conclusion of the upset bid process. A preliminary schedule of the <br /> sale is as follows: <br /> • Board Approval of Surplus Designation: February 16, 2021 <br /> • Board Approval of Commercial Real Estate Firm: February 16, 2021 <br /> • Preparation of Marketing Materials/RFP: February 17 — March 1, 2021 <br /> • Post RFP/begin 30 days marketing property: March 2, 2021 <br /> • RFP Due date: April 2, 2021 <br /> • Begin 10 day upset bid process: April 5, 2021 <br /> • Conclude 10 day upset bid process, round 1*: April 15, 2021 <br /> • Board Approval of Highest Bid: April 20, 2021 <br /> • Due Diligence: April 21, 2021 — May 14, 2021 <br /> • Escrow/Inspections/Closing: April 21, 2021 — June 11th, 2021 <br /> * Assumes only one round of upset bidding <br /> The terms of the sale would stipulate that the buyer honor all aspects of the existing lease, <br /> including rent schedule, term length, and extension options. <br /> FINANCIAL IMPACT: The sale of 401 Valley Forge Road, Hillsborough, NC is projected to net <br /> approximately $4,000,000. These funds will be utilized to offset projected budget shortfalls <br /> associated with current economic climate. <br /> SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated <br /> with this item. <br /> ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal <br /> impact associated with this item. <br />