Out-of-Box Outreach Sold Lodi Industrial Property: How Creative Outreach Sold a Challenging 25,000 SF Lodi Industrial Building to the City for a Navigation Center

A longtime client reached out after selling his company, needing to disposition multiple industrial properties from San Diego to Northern California. The first we tackled was a unique ~25,000-square-foot metal building on a large parcel in Lodi, California. The yard and land were excellent assets—spacious and versatile—but the interior featured dated elements and a non-traditional layout that didn't appeal to standard industrial buyers like manufacturers or distributors.

We prepared comprehensive marketing materials, launched an aggressive campaign, and priced it thoughtfully at $2.495 million based on market data and comparables. Despite solid positioning, offers were scarce. The building's quirks and Lodi's market dynamics (a smaller Northern California submarket with selective demand) kept traditional buyers on the sidelines.

The Challenge: Limited Traditional Buyer Interest

After initial marketing yielded an underwhelming response, I regrouped. Rather than lowering price drastically or waiting indefinitely, I thought outside the box—drawing from a prior successful transaction in Orange County where I sold an industrial property to a local city for use as a navigation center/homeless shelter. That deal provided strong value to the seller while delivering meaningful community benefits.

Lodi faced a significant unhoused population and was actively searching for suitable sites for a permanent Access Center (their term for a navigation center with shelter, services, and pathways to housing). The city had explored various locations but encountered neighborhood pushback. This property's key advantages:

- Located in an industrial-zoned area with minimal surrounding residential impact.

- Large parcel ideal for potential expansion, parking, or supportive services.

- Adaptive reuse potential for shelter operations (e.g., converting dated interior spaces).

My Strategy: Direct City Outreach and Community Advocacy

I contacted Lodi city officials directly to gauge interest. They were indeed in active acquisition mode for a site to renovate into their Access Center. We entered a letter of intent and navigated a thorough public process:

- Multiple community outreach meetings.

- City council presentations (where I shared my Orange County experience: real benefits like reduced encampments, no negative neighborhood impacts, and positive outcomes for the unhoused).

- Addressing concerns transparently to build support.

The process was rigorous but successful—the industrial zoning and location made it a strong fit, avoiding residential opposition.

The Results: Sold for $2.1 Million – A Win-Win Transaction

We closed the sale to the City of Lodi for $2.1 million—about a 15% discount from asking but a premium outcome given market challenges for this non-traditional asset. The seller achieved a clean exit with solid proceeds, avoiding prolonged vacancy or deeper price cuts. The city gained an ideal site for their permanent Access Center (now operational or nearing completion based on public updates, providing essential services like shelter, case management, and stability pathways).

This creative pivot turned a "difficult" property into a community asset, delivering value to my client and meaningful impact to Lodi.

Key Takeaway

Great industrial real estate brokerage goes beyond standard marketing—it's about creative problem-solving, leveraging prior experience, and sourcing non-traditional buyers when needed. In slower or mismatched markets, thinking outside conventional buyers (e.g., municipalities, nonprofits, or adaptive users) can unlock transactions that benefit everyone.