Challenge
This property was listed above market comparable sales targeting an owner-user who could take advantage of the benefits of ownership to justify the high price. It was clear that the previous owner put a lot of pride into the buildout of this property. The quality and unique design made it a desirable asset. We were confident the space would attract technology tenants willing to pay above market rents for the image. Our client was an investor, so it was important we negotiated a purchase price that would cash flow the asset at market rents.

Case Study
The 2,568 SF creative office space was purchased for $1,0750,000. We negotiated the option to market the property before the close of escrow. Our confidence in the creative design and quality marketing materials allowed us to secure a web development tenant at an effective rate of $2.16 NNN for a new five-year term.

Results
The new lease started immediately after the close of escrow resulting in a 6.2% Effective Cap for our client.