COMMERCIAL REAL ESTATE

Multi-tenant Office/Flex Receivership

Mitch Doner, Commercial Real Estate Broker and Vice President, Director of Asset Resolutions at Bradley Company Indianapolis office
Vice President & Director of Asset Resolutions
Services Provided
Asset Resolution
Owner Representation
Receivership
Property Management
Asset Disposition
Statistics
± 74,395 RSF
Suburban Flex / Office Building
Client
Private Commercial Real Estate Property Owners

Client
Case Study

11711 North College Avenue

Carmel, IN 46032

Background

11711 North College is a multi-tenant office/flex property located in Carmel, Indiana. Despite the asset’s superb location, the property’s deteriorating condition and lack of capital by the owner had resulted in occupancy falling from 95% to 62% in recent years. Unable to meet mortgage obligations or to maintain the asset in a leasable condition, the property was placed in receivership by the lender. We were appointed receiver and given the task of leasing, managing and, ultimately, selling the asset as quickly as possible.

Strategy

During the initial 4 months of this assignment, a comprehensive tenant program was instituted to increase services to the building’s tenants as well as develop a bidding process for standard service contracts designed to lower operating expenses. This resulted in expense reductions of more than 7%. Occupancy at the property was also increased by approximately 4% during this time. These combined initiatives resulted in an improved Net Operating Income of nearly 15%. Subsequently, a national marketing campaign was launched with an aggressive goal of selling the asset in 6 months or less. The property was marketed to a large national investor pool, resulting in significant interest and several offers.

Results

Less than 15 weeks after starting the marketing process, the property was sold to an investor from California for approximately 92% of the offered price. This exceeded the Seller’s expectations for both timing and price. The team was also retained by the new buyer to continue to lease and manage the property.

STRATEGY

During the initial 4 months of this assignment, a comprehensive tenant program was instituted to increase services to the building’s tenants as well as develop a bidding process for standard service contracts designed to lower operating expenses. This resulted in expense reductions of more than 7%. Occupancy at the property was also increased by approximately 4% during this time. These combined initiatives resulted in an improved Net Operating Income of nearly 15%. Subsequently, a national marketing campaign was launched with an aggressive goal of selling the asset in 6 months or less. The property was marketed to a large national investor pool, resulting in significant interest and several offers.

RESULTS

Less than 15 weeks after starting the marketing process, the property was sold to an investor from California for approximately 92% of the offered price. This exceeded the Seller’s expectations for both timing and price. The team was also retained by the new buyer to continue to lease and manage the property.

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