Office Case Studies
This asset had been badly mismanaged. The elevator and HVAC systems were in a constant state of disrepair. The air handlers were improperly set causing some tenants to freeze and others to boil. None of the available suites were tenant ready and as a result while medical space in Beverly Hills was at 1% vacancy, this asset had a 42% vacancy. Financial records were also in disarray and leases had to be reconciled with financial statements, each suite had to be measured, and long overdue rent increases had to be implemented to maximize income. None of these many challenges prevented the sale of the asset at top market value.
This property was a 59 year old, 96% vacant medical office building in extraordinarily poor physical condition, with most of the tenant improvements in a state of partial demolition. In addition, although the building was zoned for medical use, with 51 parking spaces it was grossly under parked for any office use. As a result, the disposition of this asset was particularly challenging. However, with a targeted marketing campaign we connected with an outside broker who represented a buyer who wanted to change the use to a hotel. We worked with him through the process of changing the use of the building from medical to a hotel and successfully closed the transaction.