The stalking horse is at the paddock, champing at the bit to buy a significant industrial property in Charleston.
The purse in this case is the cavernous, state-of-the-art former Mikasa Inc. distribution center on Clements Ferry Road.
Its owner, American Commercial Inc., sought bankruptcy protection in September and to pay its debts has arranged a $20 million sale of the vacant building to a Canadian apparel maker and importer.
As previously reported by The Post and Courier, the would-be buyer, Gildan Activewear Inc. of Montreal, is considered a "stalking horse," meaning the U.S. Bankruptcy Court and the owner will look at competing offers on the condition they beat the minimum in increments of at least $500,000.
All bids are due at 4 p.m. today, followed by a court hearing in New Jersey next week. Gildan is entitled to a $350,000 breakup fee if a rival buyer prevails.
The Mikasa deal reflects the troubles plaguing the commercial real estate industry as the nation emerges from the longest recession since World War II. The proposed sale price is less than half of what the owners had been seeking when the put it on the market for $41.5 million just two years ago.
When demand for Class-A warehouses was still smoking, the sprawling structure attracted a fair amount of interest from investor-types, said Charlie Moore, a principal with Charleston-based NAI Batten & Moore.
"When the economy started to falter, we had to go back to square one, with the idea that the ideal buyer for this property would be the ideal user for this property," said Moore, whose firm is listing the 81-acre site with Southampton, Pa.-based Hart Corp.
Then along came expansion-minded Gildan, which, in addition to soaking up a big slug of vacant warehouse space would provide a nice boost for the Port of Charleston. "It is the ideal user," Moore said.
Gildan spokeswoman Genevieve Gosselin said last month that the Canadian importer of socks and T-shirts was drawn to the property because it is looking to expand it U.S. distribution network. She called the building "a good option for Gildan" but declined to comment about jobs and other details since the company hasn't yet acquired the building.
In all the 580,000-square-foot structure (not including upper-level mezzanines and offices) cost about $60 million to build and equip when Mikasa affiliate ACI completed it in 1997. A decade later and under new ownership, the tabletop-goods importer targeted the warehouse and adjoining retail store for closure.
Moore noted the Gildan deal, if it goes through, will follow two other major economic development jolts from Boeing Co. and tire importer TBC Corp. after a lengthy drought. "It's just another very strong indication of an incredibly strong turnaround in the outlook in Charleston for the economy and jobs," he said. "I think that's the story."
