April 26, 2018

A True Story of Value Add and its Rewards Part 3: The Deal.

Once we had created tremendous new value and interest in a once-obsolete building, it was time to close the big deal for our client.

With his insider knowledge of this business corridor and community, Mark Szerlag, CCIM and Partner in the Thomas Duke Company, saw that the asset would be an ideal property for a single user or a corporate headquarters. Still, he wanted to cast a wide net, reviewing all occupancy possibilities, including multiple tenancy.

Mark and his team began our marketing with a broker open house to showcase the building’s complete renovation. Representatives from local, regional, and national brokerage firms attended and left impressed with the open vistas, natural light, and upgraded systems.

Soon after, we entertained offers from several prospective tenants, ranging from 5,000 to 20,000 square-foot users. Our client was reluctant to sign any of them immediately, preferring tenants who would lease a full floor or, best of all, the whole building.

To find larger-space users, we devised a dual marketing plan. We emphasized the open floor plan and sight lines, the floor load, the electrical capacity and critical system upgrades, plus the versatile lower level with its various access options.  We left no stone unturned—and under one of them, found the property’s perfect tenant.

After exhaustive negotiations with a national brokerage firm, we finalized a ten-year, single-tenant deal with Yanfeng Automotive Interiors, the world’s leading supplier of instrument panels, cockpit systems, door panels, floor consoles, and overhead consoles.

Under the leadership of John M. Bridges, CPM and Director of Management Solutions, we completed the property improvements on time and under budget.  Yanfeng is very happy in its new home. And for our Client, this is a true story of exceeding expectations.

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