25 year-old
project suffering from deferred maintenance, environmental
problems, and ADA non-compliance.
Owners’
long-term objective uncertain due to anchor tenants (90% of space)
unknown long-term occupancy plans.
Property
Business Plan
Address deferred
maintenance, environmental, and ADA issues as cost effectively as
possible.
Maximize net
operating income within the constraints of a fully occupied building.
Renew non-anchor
tenant leases at highest effective rates as possible in light of
outdated, obsolescent building.
Enhance common
areas and main lobby with new contemporary finishes.
Institute
asbestos management program to minimize abatement costs and maintain
OSHA air-quality standards.
Create short and
long-term ADA compliance program.
Results
Maintained 95%
to 99% occupancy levels with a 7.5% increase in effective rental rates.
Increased net
operating income by 12.5%
through:
- Increased parking, utility, and service income of
$141,000.
- Decreased utility, payroll, and service contract expenses
of
$172,000.
- Successfully challenged real estate tax assessment by
reducing tax value $7,300,000 and tax bill $72,000.
