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Undervalued Business Park Presents Acquisition Opportunity
Janez recognized the following opportunities when first evaluating a Riverside, CA undervalued business park.
- Lack of management and property maintenance.
- Landlord was not billing contract expense reimbursements.
- Owning partnership was not funding tenant improvements and was therefore not leasing space. Vacancy was 40 percent compared to 10 percent market average.
- Paint, landscape, HVAC repair, roof replacement and cosmetic upgrades were relatively inexpensive investments, but would benefit new leases and renewals.
- Rent was well below competitors.
Property Improvements Maximize Value
Following acquisition, Janez implemented property management strategies designed to maximize value of the undervalued business park.
- Renamed property "Summit Business Centre" to reflect its new positioning.
- Launched branding campaign to publicize new name and property enhancements.
- Increased and stabilized occupancy.
- Began collecting contract expense reimbursements.
- Increased market rent to exceed proforma.
- Subdivided individual buildings for sale to users or smaller investors.
- Evaluated disposition of property ahead of schedule and sold at a profit to investors.
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