Turning Challenges Into Opportunities: How I Saved My Multi-Use Property Sale

[Dominic Mazzarella]

I once owned a 20-acre mixed-use property in Illinois. It included 25 mobile homes, 60 self-storage units, and four commercial tenants. When the time came to sell, I anticipated a solid profit from the deal. But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.

The first issue was with the water lines. We discovered problems that required a lot of work and significantly reduced the property’s value, forcing me to lower the price. Soon after, mold was found in one of the self-storage units, requiring expensive remediation. The price dropped further. Then, just three weeks before closing, my largest commercial tenant—who brought in as much monthly revenue as all 25 mobile home tenants combined—announced they were moving to a location closer to their main office. This news sent the deal’s value into a tailspin.

At this point, I was looking at barely breaking even. After years of hard work, this outcome was unacceptable to me. My broker advised me to "bite the bullet" and close the deal, telling me that I should be glad I wasn’t losing money on the deal. My attorney echoed the same sentiment. But something didn’t sit right. I believed there had to be another way.

That’s when I had an aha moment. Early in my ownership, a neighboring property owner approached me about purchasing a 6-acre sliver of my land that was undeveloped. At the time, his offer was low, and I had potential plans for that space, so I turned him down. Remembering that conversation, I decided to reach out to him. As luck would have it, his business had grown significantly, and he was now more eager than ever to acquire the land.

He made me an offer 12 times higher than his original one—and well above market value. This partitioning of the property and doing a simultaneous closing completely changed the trajectory of the deal. I went from barely breaking even to walking away with a very comfortable profit.

This experience taught me two critical lessons:

1. Never give up when the situation looks bleak. Before throwing in the towel, exhaust every possible solution. Creativity and determination can turn things around, even in dire circumstances.
2. Always look out for your own interests. Brokers and attorneys often prioritize closing deals quickly to collect their fees and move on, which doesn’t always align with your goals. While they can provide valuable advice, you must advocate for yourself and trust your instincts.

Selling real estate—especially multi-use properties—can be full of surprises. But with perseverance and a willingness to explore unconventional options, you can turn even the toughest situations into successes.

Have any of you ever faced a deal that seemed destined to fail? How did you overcome it? I’d love to hear your stories and insights! Hearing other owners' stories helped me to not throw in the towel and pursue every avenue possible, maybe this story will help some of you.