The situation
A 13-tenant office building, roughly 27,000 SF, running at 86% occupancy with rents well below market: a classic under-managed value-add asset.
The challenge
Pre-marketing due diligence surfaced unpermitted work, plumbing and electrical non-compliance, and mold and asbestos issues, on top of a rent roll that needed restructuring to reflect true market value.
The outcome
Sold within 90 days of listing, drawing over 110,000 online views, for $2,875,000, against a buyer represented by a major national brokerage.
Results reflect this property's conditions and scope. Other properties will differ.
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A 13-tenant office building came to us running well below its potential, rents below market, and just under 90 percent occupied. The kind of asset most people walk past.
Before we ever listed it, due diligence turned up unpermitted work, plumbing and electrical issues, even mold and asbestos, the reasons rents had been discounted for years.
We restructured the rent roll to reflect what the building was actually worth once those issues were addressed, then took it to market.
It sold in 90 days, over a hundred and ten thousand people viewed the listing online, for two million, eight hundred seventy-five thousand dollars, against a buyer represented by a major national brokerage.
That's what value-add really means: not describing a problem. Fixing it, and getting paid for the fix.
