Office Building, Fitchburg, MA
Office Building, Fitchburg, Massachusetts
Creating value in a struggling downtown location.
The Challenge
A recently renovated 90,000 SF office building in Fitchburg, Massachusetts was suffering from a movement of tenants from downtown to more accessible office buildings with adjacent parking. The building’s owner wanted to stabilize and position the property for sale. Capstone was hired to make it happen.
The Assignment
Enhance lease value, review all vendor relationships for potential cost savings, and prepare the building for sale.
The Solution
Capstone initiated a vendor competitive bidding program after reviewing the expense structure within the building. Capstone recommended a significant lease renewal with the Department of Transitional Assistance (DTA) for 22% of the building.
Because the existing tenant wanted a complete renovation of their existing space as part of the agreement, Capstone had to develop and relocate the entire office with no down time. Capstone’s construction team completed renovation of HVAC & electrical systems, new interior partitions, paint, carpet and windows treatments. Capstone also completed an additional 26,000 SF of new and renewal lease transaction representing 14 individual tenants. The property was sold through an auction process with over 50 registered bidders at the sale date. Capstone worked with the auctioneer to establish a sale package that was distributed to all bidders with updated lease and expense information.
The Result
The DTA lost zero hours of work during the six-month renovation project. At the sale, property reached a 20% premium above the take price and closed within 60 days of the auction date.