The building last sold in 2011.
Sacramento Business Journal’s Post
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Investment Real Estate Broker, Owner/Developer of Medical Office/Retail/Multifamily | Immediate Past President SIOR CT/ W. Mass | CCIM Region 11 Past RVP
In a post-pandemic era where the office real estate landscape has been undergoing profound changes, I was entrusted with the task of selling and maximizing the value of my client's office property—a challenge that demanded innovation, strategic thinking, and a deep understanding of market dynamics. Here's how we surpassed client expectations. Traditionally, this office property was always sold in conjunction with an adjacent residential property. However, through an analysis of the property's attributes and financials, we identified a strategy: bifurcating the commercial property from the residential one. By selling the commercial property first and then the residential, we unlocked value, exceeding our initial projections. In an uncertain office market, creating certainty for prospective buyers was imperative. To achieve this, while actively marketing the property, we successfully negotiated a lease extension with the property's anchor tenant—an 11,000 square foot space with an aggregate value in excess of $1M. This negotiation not only secured significant investment towards the build-out but also facilitated the expansion of a successful IT company that had been operating from this location for over a decade. This move resulted in a win-win for both the seller and the tenant, enhancing the property's appeal. Our approach to cost management was equally strategic. By thoroughly examining the property's expenses and renegotiating service contracts, we were able to significantly reduce costs. These measures led to an increase in net operating income, further elevating the property's value. To address the challenge of vacant space, we engineered a sale/leaseback arrangement, ensuring a future expansion space for the seller's business while also boosting the net operating income and achieving full occupancy. With the groundwork laid, it was crucial to generate demand and urgency among potential buyers. For this, we partnered with Ten-X, a national online auction platform I've successfully leveraged over a dozen times throughout my career. This collaboration not only provided a wide marketing reach but also ensured that all due diligence materials were available before the live bid, allowing buyers to make informed decisions. The culmination of these strategies was a highly competitive bidding environment that resulted in a sale price nearly 2X the 2012 acquisition price and closed swiftly without contingencies. Our approach is a testament to our belief that not all brokers are created equal. We are committed to creating value for our clients in every transaction. Experience the difference with us: 860.371.7103 call or text Ian Grusd, CCIM SIOR Evan Koransky Samuel A. Gelman The CCIM Institute SIOR Global: Society of Industrial and Office Realtors SIOR Connecticut / W. Massachusetts Chapter
A 20,358-square-foot, fully leased office building in West Hartford recently sold to the owner of Anthony's Ocean View in New Haven for $1.49 million. https://ow.ly/57jL50QySc3
Owner of Anthony’s Ocean View in New Haven pays $1.5M for West Hartford office building
hartfordbusiness.com
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REIT Industry Expert/Phish Aficionado | Chief Investment Officer of Hoya Capital & Hoya ETFs | Educating Investors about the REIT Industry
🏢 Navigating Market Shifts: Los Angeles Office Building Sells at 52% Discount 📉💼 In a significant market move, a Los Angeles office building near Century City and Beverly Hills recently changed hands at a price 52% below its 2018 value. Here are the key details: Property: The five-story office building at 1640 Sepulveda Blvd. Buyers: Harbor Associates and F&F Capital Group Purchase Price: Approximately $44.7 million Previous Sale (2018): The building exchanged hands in 2018 for $92.5 million. Market Dynamics: Market Pressures: The LA office real estate market faces challenges due to the impact of remote work and financing complexities amid soaring interest rates. Recent Trend: This sale echoes a trend seen in the recent Aon Center transaction, which sold for about 45% less than its 2014 purchase price. Property Details: Construction: The building, constructed in 1987, underwent significant renovations, including over $11 million in upgrades to tenant spaces and a redesigned lobby. Occupancy: At the time of the deal's closing, the building was 80% occupied. Insights from Harbor Principal Joon Choi: "After several years of kicking the can down the road, we are now beginning to see distress hit the market. There are still compelling opportunities to find hidden gems at a deep discount to replacement." https://lnkd.in/gjJ_HA29
Los Angeles Office Building Sells at 52% Less Than 2018 Price
bloomberg.com
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I know office space is a hard sell in 2024, but self-storage is a poor use of a stellar building. This is an architectural anchor along Union, and though surrounding developments may not be at critical mass to make a more innovative project pencil (yet), I have to ask if this is truly the highest and best use of the CA building. Reflecting on Travis Tinnin's article on meantime uses, how can we activate and pre-vitalize this challenging building while the market and many proposed projects nearby catch up?
The former Commercial Appeal building has been marketed as two listings: a multistory warehouse and five-story Class B office space.
Owner explores self-storage as use for Commercial Appeal building
bizjournals.com
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"Madison Office Building Fully Leased and Sold for $27M" Read the full article below..
“Madison Office Building Fully Leased and Sold for $27M”
https://cremarketbeat.com
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Transforming commercial spaces is normal and encouraged. Let’s take a look at what you can expect and how to negotiate these renovations. To continue reading article, click here: https://lnkd.in/gt9ay2Ai #commercialspacerenovation #losangelespropertymanagement
Transforming Commercial Spaces: Renovation and Redevelopment
lapropertymgt.com
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Great insights from Mark Bradshaw, Patrick J. Feeney, Jr., and Bo Hargrove, SIOR! As Pat mentions, things are changing a little. It will be interesting to see if Tenant Improvement bids remain steady or continue to increase ⬆️, even as the number of in-demand industrial TI bids slows. Full article below by John Salustri in #siorreport Fall Edition 2023 #industrial #sior
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**Exceptional Commercial Real Estate Opportunity Awaits!** Welcome to a **versatile and expansive** commercial building that offers an array of possibilities for your business. This single-story structure is uniquely designed with **two separate entrances**, allowing it to function as either two distinct businesses or one large enterprise. One side of the building features a fully equipped **kitchen**, a **bathroom**, and **three spacious offices**. This setup is perfect for a business that requires private rooms or meeting spaces. The other side opens up to a **large, adaptable area** that can be customized to fit your business needs. It includes **three offices**, **two classrooms**, and **two large public bathrooms** complete with showers. This side is ideal for businesses that require open spaces for collaboration or education. The building's location is another one of its many assets. Situated directly across from **two Marriott hotels**, it guarantees high visibility and foot traffic, making it a prime spot for businesses looking to attract both local and out-of-town clients. This commercial property isn't just a building-it's a launchpad for success. Don't miss out on this opportunity to elevate your business to new heights! Square footage figures are provided as a courtesy estimate only and were obtained from County Records . Buyer is advised to obtain an independent measurement.
$779,900 | 1095 W 500 S Vernal UT 84078
utahrealestate.com
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"New Leases Totaling 21K SF Secured by Tribeca Office Tower" Read the full article below..
“New Leases Totaling 21K SF Secured by Tribeca Office Tower”
https://cremarketbeat.com
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As #StMichaels continues to break commercial prime rent records in #Manchester, with rates at £44/ft² compared to Liverpool at £35/ft² and Leeds at £38/ft², the availability of new Grade A office space remains low in the city. The need for net-zero compliance, flexibility, and new technology integration is essential to achieving premium products and the highest rents. There are numerous existing offices within the North West with low occupancy that continue to fall behind the leading pack. At Zerum, we support clients by exploring various options for each project and generally consider the following strategies: #Repair: A 5-year extension focusing on repairing and painting landlord areas only. This is a low-cost, quick-to-market, short-term solution. #Remodel: A 5-15 year extension involving retaining or replacing MEP (Mechanical, Electrical, and Plumbing), WCs, and common areas, with no major structural or façade works. #Renew/Cut & Carve: A 30-year extension including new MEP, façade upgrade or replacement, major structural alterations, and additional floors or infills. #New Build: Constructing entirely new buildings to meet the highest standards. Our team boasts extensive experience, having delivered over 745,000 ft² of Grade A commercial space in both London and the North West. We have a clear understanding of what is required to achieve premium rents in relevant locations, including ever-evolving #ESG (Environmental, Social, and Governance) requirements. Should you require any support, please get in touch. Zerum #Costmanagement #Projectmanagement #EmployersAgent #Planning #Commercial #Office #GradeA
St Michael’s breaks Manchester headline rent record… again - Place North West
placenorthwest.co.uk
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