Adverse Circumstances become a Chance for Renovation and Growth
The 1900 Church Street building, built in 1989, was a 50,235 square foot office building located in the Midtown area of Nashville, Tennessee. In 1998, Stan Snipes helped an investor purchase the property even though the building was suffering vacancy issues, had below market rental rates and was in need of repairs. The owner engaged us to evaluate the condition of the common areas, building systems and garage to determine what improvements would be necessary to raise the class of the building, with the hopes of attracting higher paying tenants and increasing the value of the building.
We engaged a team of architects, engineers and contractors to assist in a detailed study of the building. We presented the owner with a list of crucial improvements that needed to be performed in order to elevate the building’s finishes. The owner authorized the improvements and immediate renovations began including new elevator cabs, lobbies, bathrooms, common area corridors, ceilings, roof, garage lighting/finishes and a new canopy across the front entrance. We marketed the space to the surrounding users within the West End Class A submarket, which were being leased at rates that were $2–3 per square foot higher than our property but with less parking.
- Professional Construction Oversite. We completed the recommended improvements, bringing the building to a high Class B standard.
- Successful re-leasing. The building was leased to 10% occupancy at rates that were $2.00 per square foot higher than before the improvements.
- Insured value through wise use of capital. Over $3 million in value was generated to our investor by spending only $75,000 in capital improvements on the property.