Commercial Re al Es ta te, Inc . VALUE-ADD OFFICE …• Prepared a detailed cash flow analysis...
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Sun Commercial Real Estate, Inc. Generated Closing LOI Day 1 of Markeng Period 3rd Highest PSF Price for a Value-Add Office Building in 8 years www.suncommercialre.com 6140 Brent Thurman Wy. Suite 140, Las Vegas, NV 89148 702 | 968 | 7300 Phone “We have enjoyed our long term relaonship with Cathy Jones and the Investment Services Group because of the congruent core values between our company and theirs. They treat every opportunity, be it a small parking lease to a mul-million dollar Class A investment sale, with the same level of detail and tenacity no maer the obstacles. This combinaon of experience, experse, and atude is extremely rare in the brokerage world. We recognize this and sincerely value the long term relaonship we have built with the ISG team.” - Benjamin Garfinkle WGH Partners - Managing Partner By proacvely addressing these issues the Investment Services Group at Sun Commercial was able to generate a smooth successful transacon with a deal agreed with the evenutal buyer in only 34 days. • Proprietary targeted buyer pool generated winning LOI 1 day into the markeng period • 3rd Highest PSF Price for a Value-Add Office Building in 7 years Upon receiving the exclusive markeng assigment ISG imple- mented several steps to address the above challenges and max- imize the sales proceeds to our client including the following: • Prepared a detailed cash flow analysis based on the cur- rent rent roll and operang costs and projected absorp- on to show how an annual leveraged yield of over 30% was achievable • Craſted a compelling offering memorandum to show- case the physical and locaonal qualies of the property along with the current growth and development acvity in the immediate submarket • Worked with the current leasing broker to focus leasing efforts to all categories excluding residenal real estate so the exposure to the sector was minimized as the oc- cupancy rate increased • Marketed the property to qualified buyers through a di- rect email and telephone campaign Red Rock Business Center (RRBC) (previously Copper Pointe) had fallen vicm to the Great Recesion and was an unfinished, unleased shell. A great locaon with direct access and exposure to the 215 Beltway with great views of Red rock and The Strip were no match for high leverage, negave absorpon and falling lease rates. WGH Investments evaluated its potenal, acquired the property and completed their turnaround plan by compleng the grey shell construcon and all exterior improvements and with aggressive leasing brought the building to 60% occupancy. They approached the Investment Services Group of Sun Commercial Real Estate (ISG) to market this asset for sale. The challenges to overcome included the following: • Educang investors that the improving leasing market would connue with rising lease rates and posive absorpon despite a submarket vacancy of 19.8% • Geng investors to look at the underlying returns and yields provided by the exisng and projected operang statements rathern than focusing on the highest value-add PSF price in the enre Las Vegas market • Current roster of tenants highly correlated to the volale residenal real estate market created potenal rent roll risk CHALLENGE ACTIONS RESULTS TESTIMONIAL $12.2 MILLION RED ROCK BUSINESS CENTER VALUE-ADD OFFICE INVESTMENT Recent Client Success
Transcript of Commercial Re al Es ta te, Inc . VALUE-ADD OFFICE …• Prepared a detailed cash flow analysis...
SunCommercial Real Estate, Inc.
Generated Closing LOI Day 1 of Marketing Period3rd Highest PSF Price for a Value-Add Office Building in 8 years
www.suncommercialre.com 6140 Brent Thurman Wy. Suite 140, Las Vegas, NV 89148 702 | 968 | 7300 Phone
“We have enjoyed our long term relationship with Cathy Jones and the Investment Services Group because of the congruent core values between our company and theirs. They treat every opportunity, be it a small parking lease to a multi-million dollar Class A investment sale, with the same level of detail and tenacity no matter the obstacles. This combination of experience, expertise, and attitude is extremely rare in the brokerage world. We recognize this and sincerely value the long term relationship we have built with the ISG team.” - Benjamin Garfinkle WGH Partners - Managing Partner
By proactively addressing these issues the Investment Services Group at Sun Commercial was able to generate a smooth successful transaction with a deal agreed with the evenutal buyer in only 34 days.
• Proprietary targeted buyer pool generated winning LOI 1 day into the marketing period• 3rd Highest PSF Price for a Value-Add Office Building in 7 years
Upon receiving the exclusive marketing assigment ISG imple-mented several steps to address the above challenges and max-imize the sales proceeds to our client including the following:
• Prepared a detailed cash flow analysis based on the cur-rent rent roll and operating costs and projected absorp-tion to show how an annual leveraged yield of over 30% was achievable
• Crafted a compelling offering memorandum to show-case the physical and locational qualities of the property along with the current growth and development activity in the immediate submarket
• Worked with the current leasing broker to focus leasing efforts to all categories excluding residential real estate so the exposure to the sector was minimized as the oc-cupancy rate increased
• Marketed the property to qualified buyers through a di-rect email and telephone campaign
Red Rock Business Center (RRBC) (previously Copper Pointe) had fallen victim to the Great Recesion and was an unfinished, unleased shell. A great location with direct access and exposure to the 215 Beltway with great views of Red rock and The Strip were no match for high leverage, negative absorption and falling lease rates. WGH Investments evaluated its potential, acquired the property and completed their turnaround plan by completing the grey shell construction and all exterior improvements and with aggressive leasing brought the building to 60% occupancy. They approached the Investment Services Group of Sun Commercial Real Estate (ISG) to market this asset for sale.
The challenges to overcome included the following:
• Educating investors that the improving leasing market would continue with rising lease rates and positive absorption despite a submarket vacancy of 19.8%
• Getting investors to look at the underlying returns and yields provided by the existing and projected operating statements rathern than focusing on the highest value-add PSF price in the entire Las Vegas market
• Current roster of tenants highly correlated to the volatile residential real estate market created potential rent roll risk
CHALLENGE ACTIONS
RESULTS
TESTIMONIAL
$12.2 MILLIONRED ROCK BUSINESS CENTERVALUE-ADD OFFICE INVESTMENTRecent Client Success
