A financial institution became the owner of this property at the time a 350,000 sf tenant was moving out, leaving the building 27% occupied. Major systems, such as HVAC and electric, were outmoded and in some cases failing. The building had a negative cash flow.
Athenian's predecessor firm was chosen from a wide pool of bidders to over see the repositioning of this property. Senior Athenian staff presented a redevelopment plan to the new owner which included phased initial building infrastructure improvements while testing market viability. Athenian successfully signed and installed a new lead tenant, and then proceeded with the remainder of the $42m building renovation. Work included the installation of new electrical and mechanical systems, the restoration the historic masonry exterior, the recreation of the historic cast iron storefronts, and a complete redesign of common areas and finishes. Additional new tenants were installed on time and on budget. As part of the financing of this complex project, the team obtained an historic tax credit, secured a first mortgage, and negotiated a significant real estate tax reassessment. It hired and supervised all architects, engineers, and multi-prime contractors. It targeted a tenant mix of medical office, back office, and telephone switchgear; all three groups were successfully secured.
With all major building systems replaced, existing tenants retained, and 427,000 sf of new tenants obtained, the building is profitable. The property was sold to Digital Realty Trust, a national REIT specializing in mission-critical tenants, at more than ten times its original value. Athenian Properties was retained as property and construction manager.
