Office-Retail | Fairfax City, Virginia
Involvement: Premier was hired by the absentee owner to manage this 113,000 sf office and retail building with almost 100 tenants at the end of 2011. The property was 61% occupied at the time and most of the leases were on very short terms. The resulting financial situation was straining the leasing and maintenance programs and challenging existing tenant and lender relations.
Actions: Premier immediately interviewed the existing onsite staff and determined that they had the necessary skills, but needed more direct supervision. After hiring the staff, Premier established low cost but aggressive leasing and cosmetic upgrade programs. Some of our actions included restoring a restaurant space destroyed by fire to leaseable condition, renovating the elevators, solving a long standing water metering issue, working with zoning counsel to modify outdated proffers that were restricting leasing options, updating the form lease documents to provide for easier executions and longer terms, instituting a new website and online advertising program, and dividing some of the larger suites into smaller, more market friendly, units.
Results: Within 18 months occupancy climbed to 82%. In 2012 Premier was offered an opportunity to participate in the project financially and became the managing partner of the new ownership entity. In 2014 we refinanced the property and cashed out the entire original equity investment. In late 2015 Mosby Tower was sold to a local investment company at a profit that generated a healthy multiple of the owners’ original equity investment.