125 Lincoln Ave/150 Washington Ave
Santa Fe, NM 87109
Office Lease
RECENT CLIENT SUCCESS
A BLUEPRINT FOR SUCCESS: HOW STRATEGIC LEASING REVIVED A SANTA FE LANDMARK
CHALLENGE
In 2021, in a strategic 1031 Tax Exchange, an investor took on the challenge of acquiring and revitalizing a 134,000-square-foot, Class A mixed-use building in the heart of Santa Fe. At acquisition, the building was underperforming, with occupancy at only 63% and several key tenants within 18 months of lease maturity. Additionally, the rents being charged were below prevailing market rates, signaling a significant value-add opportunity.
ACTION
Ownership, determined to reverse the building's fortunes, teamed with Real Estate Advisors (REA) to launch a strategic leasing and renewal campaign. This campaign focused on retaining current tenants whose leases were due to expire and on attracting new, high-caliber tenants to enhance the property's profile and revenue. The strategy bore fruit, with all existing tenants choosing to renew and seven new tenants coming on board. The mix of notable national entities and esteemed local businesses brought a new level of prestige and stability to the property.
RESULTS
- The building's occupancy soared to a healthy 90%, indicating a robust and stable tenant base.
- Renewing tenants were secured at an average lease rate increase of 15%, reflecting the property's enhanced value and the success of the leasing strategy.
- Three years after acquisition, with the rent roll stabilized and the Net Operating Income (NOI) substantially increased, the owner engaged REA to sell the property, which sold for 125% of the original purchase price, highlighting the effectiveness of strategic improvements and aggressive marketing efforts.
TESTIMONIAL
The transformation of our Santa Fe property by teaming with Real Estate Advisors (REA) is a testament to their unparalleled expertise and commitment to excellence. From the outset, REA's strategic approach to leasing and marketing not only revitalized our mixed-use building but significantly increased its value. Their proactive efforts in securing high-profile tenants, alongside respected local businesses, dramatically boosted our occupancy rates and rental income. This success story underscores the value of partnering with REA, whose team's collaborative spirit, extensive network, and negotiation prowess are unmatched in New Mexico's commercial real estate landscape.
---John Albright, CEO of CTO Realty Growth, Inc.