292K SF Single-Tenant Building Updated For Multi-Tenant Office and Industrial
OVERVIEW
- 4101 Founders Boulevard | Batavia, Ohio
- Owner: Sentinel Investments
- 292,000 SF
- 16.137 Acres
- Mixed-Use, Multi-Tenant Office and Industrial
- Year Renovated: 2015
- Sale Price: $6,850,000
The Client
In May 2014, Sentinel Investments (“Sentinel”), in its capacity as real estate advisor for a prominent life insurance company, took ownership of 4101 Founders Boulevard after the owner opted to return the asset deed in lieu of foreclosure. At the time Sentinel took ownership of the asset, its low physical and economic occupancy, short-term tenants, and deferred building maintenance negatively impacted the asset’s value.
The Challenge
Founders was originally constructed in 1993 as an owner/user asset for Crable Sportswear. The building is 292,000 SF in total, consisting of a 40,000 SF Class A office building, attached to a 138,600 SF warehouse distribution facility, 99,000 SF of climate-controlled manufacturing warehouse, and a 14,400 SF mezzanine. The building was never properly converted from a single-tenant to multi-tenant use. As a result, the asset suffered from under-capitalization, below market leasing activity, and significant deferred maintenance.
Our Approach
Sentinel needed a highly-skilled, diverse team of professionals that could integrate office and industrial leasing, property management, construction, and investment sale disposition. The goal was to formulate an investment strategy that would maximize the disposition value of the asset in as little time as possible. Sentinel selected us because of its extensive local market knowledge, and its superior track record of success in dealing with complicated commercial real estate assets. Sentinel needed a highly-skilled, diverse team of professionals that could integrate office and industrial leasing, property management, construction, and investment sale disposition. The goal was to formulate an investment strategy that would maximize the disposition value of the asset in as little time as possible. Sentinel selected us because of its extensive local market knowledge, and its superior track record of success in dealing with complicated commercial real estate assets.
The Outcome
Given the unique make-up of the asset, as a mixed-use office/warehouse facility, we created a specialized leasing team that consisted of both office and industrial experts. This customized approach ensured successful marketing for high-quality, new tenants. We secured a municipal zoning change to allow for multiple tenancy. Once the proper zoning was in place, we undertook a number of interior mechanical and fire and life safety projects to bring Founders into building code compliance. As part of the overall asset preservation and marketing initiative, we contracted for the roof replacement, major landscaping renovations and parking lot improvements. During this re-positioning effort, our specialized leasing team was able to secure three new, high-quality tenants - increasing Founders’ occupancy from 40% to 86%. Our in-house construction company, General Contracting Partners, Ltd. (GCP) was able to complete all of the required tenant improvements on time and for the lowest possible cost.