Situation
- Current ownership purchased the building for $43.5M in August 2014. At that time, the building was 94% occupied, but with a known vacate of 42,000 square feet. Previous owners and the leasing and management team didn’t fully leverage the competitive advantages of the building, resulting in lower rents comparable to surrounding traditional office space ($18.50/sf Full Service).
- Due to lobby and common areas, the add-on factor was not appropriately attributed to current tenants or to new deals because a generic plug number (15%) had been used to calculate previous deals.