MIXED USE
Case Study #1
Mixed use value added situation in Hinsdale, Illinois
Engagement:
Partner in purchasing and adding value to a mixed use retail and residential property. The property had negative cash flow at time of purchase.
Process:
Determined the highest and best use was to re-lease the retail letting existing leases expire and bringing a new, better class of tenant. Determined retail rent was substantially below market and had first mover advantage in sub-market creating escalation in rents. Re-leased retail rent to a combination of well capitalized local tenants and national tenants. Determined best retail mix. Converted multi-family rental units to office rental units, increased rentable area by converting previously un-used but very appealing space, upgraded power grid, lowered HVAC costs and upgraded curb appeal.
Outcome:
Sold asset and increased value of property by 32% within 3 years.
Key Capabilities:
......- Ability to recognize and recommend over-looked undervalued asset
......- Ability to re-tenant property with higher rents and better credit quality
......- Ability to identify tenants that resulted in a better retail mix complimenting each other
........and thereby increasing sales.
......- Ability to recognize and convert upper floor tenants to a higher and best use by changing
........the space from a residential rental basis to a office use basis where demand was substantially stronger.
......- Ability to work with a strict and difficult local government and complete understanding of construction ........process.
