24,737 RSF office building that was 80% leased with 60% of the building rolling within the next 18 months.
Owners were looking for an exit and did not want to hold onto the building through the next cycle.
Stream’s knowledge of the market enabled them to know there was demand for buildings that could accommodate users looking to take advantage of SBA Debt (occupy over 50% of the building) while having other tenants within the building pay for the mortgage.
The current owner was motivated to sell and Stream found a buyer to purchase the building off market at a significant discount to where buildings were trading.
After representing the buyer, Stream methodically retained all tenants on the ground floor of the building thus leaving a marketable full floor available for a user.
Renovations were completed that included: standing seam metal roof, new entry with stained wood slats/smooth coat stucco, new interior corridors, new exterior paint and drought tolerant landscaping.
Executed a marketing campaign that included: in-person canvassing, drone video tours, postcard mailers, cold-call campaign and a broker incentive program to make sure the maximum value was obtained for the asset.
Updated second floor to tour condition, that included: white boxing a portion of it (minimizing costs) and removing the ceiling grid to accent the high ceilings and aid in natural light.
Stream found a buyer in Gold Acceptance, who occupied the 2nd floor and used the rent from the multi-tenant ground floor to help off-set the mortgage.
Ownership purchased the building for $117.23 PSF, put $18.50 PSF into the building and at the direction / marketing efforts of Stream sold it for $190.97.
Stream completed a lease audit and found 145 SF of building during the due diligence process that was not accounted for and grew the rentable square footage of the building ($27,690.65 increase to the purchase price).
The transaction marketed a high comp in the Park center area submarket for 2017 YTD and outperformed the office Class B and C market by 35%.