Highlights

• Leveraged available land and completed a build-to-suit for lease for a 7,000-square-foot tenant whose lease was expiring and needed to expand
• Added significant NOI to the asset through a creative solution to a long-standing tenant’s situation
• Substantially enhanced the value of the asset, increasing its rentable square footage by almost 50 percent, and going from two to three buildings
• Provided turn-key construction and management services to owner

Synopsis

While acting as manager and exclusive leasing agent for the owner of Athenia Park Office Center since 2000, JCF Real Estate added considerable value and net operating income (NOI) by completing a 12,000-square-foot build-to-suit for lease for one of the complex's largest tenants, Dialysis Institute of America. This creative solution, leveraging the tenant's need to expand and the availability of land for expansion retained an important tenant and expanded the size of the asset by nearly 50 percent, from 28,000 square feet to 40,000 square feet.

Detailed Situation/Description:

In 2000 JCF Real Estate assumed management and leasing responsibilities for the Athenia Park Office Center in Olympia Fields. At the time, the two building 40,000-square-foot, Class "B" building offered tenant's little if any room for growth and expansion. Dialysis Centers of America's need to almost double its space, to 12,000 square feet, created a potential 7,000-square-foot vacancy, if the tenant had to relocate out of the building.

Strategy:

JCF Real Estate sought to utilize the firm's expertise in the areas of construction and the asset's additional land for development to satisfy the tenant's needs by developing a new building. This strategy required "buy-in" from the tenant and the owner, both whom would be making significant financial commitments.

Solution/Results:

After securing ownership approval, JCF negotiated a long-term, 12,000-square-foot build-to-suit for lease transaction and orchestrated the design and construction of a building specifically tailored to meet the operational needs of Dialysis Centers of America. The construction process from the time the first footings were placed until the certificate of occupancy was secured was approximately six months.

With substantial value created and the long-term extension of a longstanding tenant in place, the property now is being marketed for sale by JCF Real Estate for the owner.