Greenhaven Offices

Client

LNR Partners

Project Overview

Two single story office buildings with a total of 13 tenants, including Sutter Medical and other national and local tenants. In 2009, ProEquity stepped in to manage leasing and property management.

The Challenge

The project was over 80% occupied at takeover. Although the occupancy had been retained, only approximately 50% of the tenants were paying rent.  Ownership was initiating monthly capital calls to cover, white receiving 30% of stated income.

The Solution

We implemented a short-term leasing plan, coupled by a longer-term stabilization and management plan that included a mark to market approach on new leases, renewals, and the recapturing of operating costs.  Implemented tenant-by-tenant “evict-and-replace” program to back fill the vacancy and ease client concerns, and we set up a cost analysis and renewal program to target renewing tenants’ operating expense baseline recapture rights by the Landlord.

The Result

Within 6 months, we brought in new tenants, all local and many unrepresented by other brokerage firms, increasing occupancy to 95% over a 3-year period with all tenants current. We renewed approximately 30% of rent roll, increasing recoveries by 20%.