Industrial Property
Located at:
401 East Lincoln, Street
Nappanee, Indiana 46550...Representative Case Studies
Sandburg Mall (Galesburg, IL)
Property
428,000 sf enclosed regional mall
REO for a Special Servicer of CMBS pooled loans
Service Provided
- Property Management
- Leasing
- Disposition Services
Challenge
To achieve optimal asset recovery for bondholders through improved operations and an effective disposition strategy.
Opportunity
Make immediate improvements in net operating income and stabilize tenancy to achieve maximum value.
Success
Increased in-place NOI by over $200,000 including reducing the real estate taxes by 66%. Achieved a sales price greater than Seller's expectations.
Immediately after taking over the property management and leasing responsibility from a national mall operator, Foresite Realty Partners management and leasing professionals created and implemented a strategic operating plan for stabilizing and maintaining value at the property. This plan included:
- Reducing assessed value by 75% through direct negotiations with the local property tax authority, thereby increasing NOI by over $200,000.
- Execution of a leasing plan to stabilize tenancy. Leases with nine tenants were completed in six months.
- Identifying approximately 35,000 sf of additional leasing prospects.
After increasing the property’s operating performance, Foresite’s investment sales team executed a targeted disposition strategy that included the following:
- Preparing the property for introduction to the marketplace, creating the marketing package in-house and administering the sale process including tours, the due diligence process and closing.
- Utilizing the latest form of technology by creating an on-line market place and web-based deal management center to successfully connect with over 2,000 potential buyers.
- Negotiate, on Seller’s behalf, to achieve pricing and timing goals.