533 WEST COLLINS
Hager Pacific Properties identified the following challenges with the West Collins property acquired in Summer, 2003:
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Seller required a quick close and a very brief due diligence period; |
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Previous use as an automobile body shop raised environmental concerns; |
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The existing lease for the front unit was poorly documented creating access problems which impaired the marketability of the rear of the property; |
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Vacant space at the rear of the property had no visibility/limited access; and |
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The property had certain deferred capital maintenance, including a failing roof. |
Hager Pacific was able to complete its due diligence in five days and close the transaction shortly thereafter. HPP also:
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Redrafted the lease with the current tenant during due diligence, clarifying all ambiguities and gaining flexibility for leasing the balance of the property; |
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Secured a new tenant for the rear of the project during the due diligence period and negotiated a lease prior to the end of escrow; and |
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Completely replaced the failing roof within 30 days of closing. |
Hager Pacific’s aggressive repositioning strategy resulted in a fully leased building at the close of escrow. The company was able to increase the asset’s total value significantly through detailed lease negotiations, property marketing and project renovation, all of which were completed within the Seller’s narrow due diligence/closing timeframes.
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