Case Studies

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The owner of 12 small bay Industrial Buildings needed our help when vacancy dropped to 68%.  Our first step was to provide an analysis of competing properties to determine competitive rents, consessions and market vacancy.  Once we determined the market, we developed a strategy to beat it.  We did this by revamping the property website and brochures to make the tenant interface more user friendly.  We then developed a marketing campaign using cost effective advertising techniques to drive traffic.  We trained his assistant to field and log calls and developed a strategy to incentivise brokers to refer tenants to him without paying commissions!  Within the year (2010) the portfolio stabilized at 93%.

Peace_button_largePeace Broker

Upon the death of a partner in a large industrial/Retail Portfolio the family and partners were on the verge of litigation.   The family wanted to cash out while the partners felt that it was the wrong time and no-one could agree on values.  All parties realized that a partition action would be costly so they agreed to hire CoRE Consulting to try a mediation.  Our initial step was to determine current market value and determine the needs of each party.  Our solution was to sell three of the underperforming properties which enabled the partnership to buy out the family members at a slightly higher price than they would have liked since the increased cashflow and ability to refinance more than offset the additional cash outlay.

Needle_in_haystackNeedle in a Haystack

A national education company could not locate the right location  after a year of working with a broker.  Utilizing our database of  buildings in the market, we provided a list of every building that exisited which matched their criteria.  Once a shortlist of 12 buildings was created, we contacted each owner to determine if they were interested in selling.  We found one owner who wanted to sell once their tenant moved out.  We negotiated a purchase price based upon a below market cap rate based upon the remaining 2 years remaining lease term.

taxingA Taxing Situation

We were contacted by a desperate owner who had 30 days to pay his delinquent property taxes before they put the property for sale.  Unfortuneately, the owner did not have the money and, although, he had sufficient equity in the property, there was a lien held by Bank of America cross collateralized with another property.  Our first step was to find an investor who was willing to provide capital to pay the delinquent taxes in exchange for a favourable contract to purchase the property after 120 days.  If the contract did not go through, the investor was to recieve 15% on his capital.  We then marketed the property for sale and found a buyer willing to pay market value for the property.  Finally, we negotiated a release from Bank of America and the SBA by showing them that they had sufficient equity in the primary property.

beautyBeauty Competition

An owner had just lost a large tenant and wanted to hire a broker to release the space.  He was being courted by several brokers and was not sure who to hire.  Each broker promised the world and demonstrated superior cabibilty through glossy brochures and an inflated resume.  Given our deep understanding of the market and those that play in it, we were able to cut through the puffery and layout the pros and cons of each broker allowing the owner to make an informed decision.  In addition, we provided a full market analysis and suggested improvements to the listing agreement.

austerityAusterity Measures

With a decline in rental rates, an owner was not meeting the terms of his loan based upon Debt Service Coverage Ratio.  Although he was still paying his loan the lender put him in default.  He had offers to lease vacant space but he did not have free capital to build out the tenant space.  Our analysis showed that if the Landlord took the tenants at the current market rent and reduce operating expenses by 10% then the DSCR would be within acceptable limits.  We found an equity partner who was willing to take collateral on another property and cut operating expenses by more than 10% thus relieving pressure from the special servicer.

Additional Case Studies are available upon request.