Historical Commercial Building, in Downcity
Historical Commercial Building, in Downcity
Revitalizing a 30% occupied, 41,976 SF downcity office building.
The Challenge
This “Downcity” office building was acquired through a foreclosure auction and at the time of acquisition, was only 30% leased. The ownership turned to Capstone Properties.
The Assignment
To manage, lease, and stabilize the income from the property, and construct all tenant and façade improvements – without disturbing the operation of existing tenants.
The Solution
After an analysis of the income and review of the rent roll, Capstone determined that the best way to improve cash flow was to aggressively market the building to retail and commercial tenants.
Capstone recommended the buyout of an existing retail tenant and the enhancement of the retail space to better position the ground level stores for occupancy by strong regional tenants.
The lobby, common areas, elevators, and other amenities were upgraded so the office space could compete as a lower priced alternative to properties in the financial district. Key to the re-development was performing these improvements during the lease-up process without disturbing the operation of existing tenants.
Acting as exclusive representative for the property, Capstone successfully secured 30,000 SF in new leases which include: Women’s Clothing Store (7,591 SF), Restaurant (1,817 SF), State Regulatory Commission Office (9,912 SF).
Capstone also managed all new tenant fit-out projects and negotiated all maintenance and vendor relationships for the building.
The Result
The building now enjoys 85% leasing with an estimated value increase of $2.0M. Capstone continues to manage and lease the property, and the owners have engaged the company exclusively to offer the building for sale.