Park Shore
Roseview Group
Provide market intelligence for Sun Trust Bank regarding
a “C” asset in an “A” location.
The Challenge:
Suntrust Bank acquired title to a REO office / retail building in a prime
location in Naples, Florida. The asset was 50 + years old and suffered
functional obsolescence that made leasing very difficult. The building was
only able to maintain 30% occupancy. The client wanted to sell the asset quickly in spite of the vacancy.
Our Impact:
Commercial Property Southwest Florida saw a different scenario. Instead of an old building that could not keep tenants, we saw a land play on a prime corner. We recommended a short term reduced rent lease plan to create interim cash flow while plans were completed for a redevelopment of the asset.
With an income stream in place, we approached developers and land bankers who received the opportunity with enthusiasm.
The Outcome:
Two cash offers were received at a price level far in excess of the client’s original expectations. By repositioning the focus from capitalized income to land value, the entire outcome of the assignment was quickly impacted to the better.
The client accepted our recommendations on a pre-qualified buyer and the sale closed on April 1, 2010.