One Executive Center
The owner had purchased this asset at the time the building was 90% occupied. Soon after purchase the main tenant, announced they were constructing their own facility and would be vacating the building. At the conclusion of the tenant’s lease, the building had dropped to 38% percent occupancy. REA | Real Estate Advisors was approached by the owner for the leasing of the One Executive Building.
With an aggressive lease-up plan utilizing our proprietary data base, our team began the process of converting the single-tenant wings of the building to multi-tenant space as new Tenants were identified. Our team worked very closely with the on-site management staff to coordinate the new tenant buildouts during an extensive renovation of the building lobby and common areas. A major concern for the ownership was to maintain a good mix of local and national credit while ensuring that no one tenant exceeded 20% of the building space. A stacking plan was closely monitored to ensure that lease rollovers were staggered in future years to create a stabilized rent roll. Within one (1) year of accepting this assignment the building reached a stabilized market occupancy rate.
At the completion of the lease-up, the ownership elected to sell this “one-off” asset in New Mexico. We were contracted to sell this asset and expose the property to the local, regional and national markets. After a 90-day marketing period a short list of offers were analyzed. After completion and extensive due diligence, the property was sold to a local buyer as an exchange property. The fund capitalization rate exceeded the initial projections by 30 basis points.