Bardin Professional Center, a two-story, 9,358 square foot, office building located in Grand Prairie, TX had been foreclosed on by Illinois Mutual in Q2 2016.
The owner, prior to the foreclosure, occupied 47.00% of the property and was scheduled to vacate within sixty (60) days of Illinois Mutual taking possession of the property.
In Q3 2016, Illinois Mutual engaged Bradford Commercial Real Estate Services to stabilize the asset, with the goal of repositioning and selling it.
Due to the foreclosure proceedings and financial state of the owner/occupant, the building had several deferred maintenance issues and lacked curb appeal.
The Solution
Bradford worked with Illinois Mutual to prioritize deferred maintenance items to reduce impact on operating costs.
A capital campaign was put in place to address items that Bradford determined were most critical to the repositioning process.
Bradford engaged the few remaining tenants to assess any immediate needs/discuss lease extension and expansion options.
Developed a marketing campaign that targeted specific users within a small radius in order to maximize prospect activity and interest.
The Results
Within six (6) months of assignment inception, Bradford:
Executed 4,468 square feet in lease transactions
Increased occupancy from 18.00% to 62.00%
Achieved effective rental rates which outpaced the market by 12.00%
Within twelve (12) months from inception of the assignment, Bradford:
Executed 3,246 square feet in lease transactions
Increased occupancy from 62.00% to 82.00%
With the asset stabilized and only one small vacancy, Bradford brought the property to market as an investment or owner/user opportunity. Within six (6) months of listing asset for sale, Bradford successfully negotiated a purchase contract with a medical user.
90 days after execution of the purchase contract, the sale closed at a price which exceeded the initial expectations of Illinois Mutual.
