Turnarounds - Republic Building
Size and Type:
Two-story office building and one-story office/warehouse. Total of 26,000 square feet.
Location:
Corpus Christi – A mixed use area near the Port of Corpus Christi and petrochemical complex. Two block from the Interstate and 1.5 miles west of the Central Business District.
Condition at Purchase:
The majority of the space was occupied by government tenants (county, state and federal). Maintenance had been neglected including lawn care. A new six-story office tower was being built four blocks to the west.
Ownership:
Purchased by a Canadian investor in February 1981. Cravey Realty Inc. was hired on a fee basis to lease and manage the building..
Management Action Plan:
- Upgrade the image of the building by repainting the exterior, restriping the parking lots and upgrading the existing landscaping.
- Redecorate inside the building with new carpet, fresh paint and plants.
- Refinish interior woodwork.
- Adjust the tenant mix. Existing tenants not fitting the mix criteria were evicted or their leases not renewed.
- Install a timing device on the air conditioning, which was running continuously.
- Replace the existing janitors with a professional janitorial service.
- Eliminate the on-site manager costing the project $800 per month.
- Respond more quickly to all tenant maintenance requests.
- Survey the market and analyze competitve environment
Project Results
Our survey revealed there was strong demand for office space from the oil industry which was prospering at the time. The owner approved the Management Action Plan and the components were completed while an aggressive leasing program was put into effect. in one year all components of the plan were implemented and annual income had increased 86%. The building was purchased in February 1981 and sold seven months later at a 44% increase in value. We continued to lease, manage and broker the property under subsequent owners until May 1987, selling the property a total of five times.
Our survey revealed there was strong demand for office space from the oil industry which was prospering at the time. The owner approved the Management Action Plan and the components were completed while an aggressive leasing program was put into effect. in one year all components of the plan were implemented and annual income had increased 86%. The building was purchased in February 1981 and sold seven months later at a 44% increase in value. We continued to lease, manage and broker the property under subsequent owners until May 1987, selling the property a total of five times.
