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Northdale Plaza - Tampa, FL

Overview

The 95,000 sf, class A suburban office building was purchased at a discount by the owner whose objective was to increase occupancy, cash flow and resulting value of the asset.

Critical Issue

The 95,000 sf, class A suburban office building was purchased at a discount by the owner whose objective was to increase occupancy, cash flow and resulting value of the asset.  Occupancy at purchase (including vacated space with pending expirations) was 69%.  In addition, the building's largest tenant comprising 32% of the total building sf, was expiring within the year.  Ownership was in need of a focused firm to aggressively market and efficiently manage the building.

 

Action Steps

Presentation of the property from the street was lacking.  Ciminelli made recommendations, accepted by the owner, for the cost-effective high-impact exterior improvements to maximize the marketability of the facility.  Ciminelli took a number of steps to aggressively market the property, resulting in increased activity and occupancy.  The largest tenant, pleased with the improved attentiveness and service, renewed their lease.  In addition, Ciminelli reevaluated the current management practices and competitively bid all service contracts.

Results

Since Ciminelli assumed leasing and management responsibilities in late 2001, occupancy has increased from 69% to 100%.  Total operating costs were reduced while tenant satisfaction was simultaneously increased (as evidenced by tenant surveys).  This property was sold in 2004 at a substantial profit to the owner.