Universal Forest Products Western Division, Inc.
The $5,250,000 sale in 2009 represented a 210% increase over the 2004 purchase price of $2,505,000, which greatly assisted UFP's cash position. The timing was excellent, as the forest products industry was facing a challenging time.
The subject property was designed as a 128,680 square-foot, grade-loaded, manufacturing facility in Woodburn, Oregon. Originally owned by Fleetwood Homes, the property was sold to Willamette Industries and acquired by Weyerhaeuser International Paper. In 2004 Jeff Brooks represented Universal Forest Products (UFP), who acquired the property to complement their existing Woodburn manufacturing operations. Each user was in the forest products industry and able to utilize the facility as it was designed with very little modification. In 2008, UFP decided to sell this facility, expand their other Woodburn site and investigate a plant expansion in the Seattle area.
Due to the present state of the economy and limited local demand, the marketing and prospect search was broadened nationally. However, the marketing was also focused on California due to the number of prospects and potential end user market demand.
During the marketing period a December snow and ice storm severely damaged the St. Helens, Oregon, operations of United Pacific Forest Products (UPFP). It was discovered that UPFP's Oregon operations supported Golden State Lumber, a chain of lumber supply stores in the California Bay Area. Once the extent of damage (roof collapse) was understood, UPFP's parent sought a replacement facility that could be brought online immediately. Their California head quarters quickly identified UFP's Woodburn facility as a possible replacement property.
After numerous discussions and review of information from afar, the property was identified as an excellent fit and an offer was received January 6, 2009. Negotiations were finalized, inspections made, conditions waived, and closing occurred one month later on February 6, 2009. During this time, UFP agreed to include its dust collection system and other special use equipment for an additional $220,000. Total consideration was $5,470,000. UFP agreed to vacate by month's end, which allowed UPFP to be back online 90 days after the December storm.
- The sale brought an excellent forest products employer to Marion County, rather than potentially move out of state in search of a replacement facility.
- A potentially extended marketing period was compressed into several months through aggressive marketing and identification of a specific need.
- The $5,250,000 sale in 2009 represented a 210% increase over the 2004 purchase price of $2,505,000, which greatly assisted UFP's cash position. The timing was excellent, as the forest products industry was facing a challenging time.