An affiliate of Pacific Starr Group (“Asset Manager”) provided extensive asset management services for the Owner of a high rise, multi-tenant office tower in Pasadena, California (“Client”).
Asset Manager successfully repositioned the property by providing a variety of services from initial acquisition, through operations, and to final disposition. These included:
- Coordinating and overseeing acquisition due diligence and financing
- Establishing and executing a flexible business plan achieving cost reduction and increasing bottom line cash flow
- Formulating and executing a capital expenditures program to significantly upgrade the property
- Selecting and closely supervising third party property management and leasing companies
- Rebranding the property including the establishment of community and city outreach programs
- Accomplishing existing tenant leasing to maximize tenant retention for 40–50 tenants of all sizes and businesses
- Supervising marketing and leasing for procuring new tenant leases
- Pioneering tenant paid parking in the area, which was adopted by other major buildings, to substantially increase cash flow where previously parking was free
- Working closely with City staff and planners during the General Plan Update which resulted in a material increase in property FAR, additions to the multifamily development cap, and an upgraded zoning change to high mixed use, all of which significantly increased the value of the site
- Envisioning and producing a conceptual development plan for the underutilized excess land to bring the property to a higher and better use thereby adding value
- Assisting Owner in the production of sales materials, assembling due diligence material and actively overseeing the marketing effort, which encompassed a global effort, including Asia
The results were a successful sale at a price which was the second highest for any office building of any size sold in all Pasadena in 2015 and was within the top third of all office buildings sold in all of Los Angeles Count regardless of size for the same period.