The Challenge
Greenfield Partners purchased a 2.1 million square foot portfolio consisting of 32 buildings that included a mix of flex and office products. The portfolio was 94% leased at acquisition; however, there was a tremendous amount of near-term roll and known vacates as well as a weighted average lease term of less than three years. The portfolio was known for being agreeable to short-term leases and willingly providing termination options.had taken over.
Our Solutions
- On-boarded entire leasing and management staff from the seller in three weeks, with a Christmas Eve closing.
- Evaluated staff over a period of six months and made strategic changes in personnel and local leadership.
- Established institutional-quality management practices and trained staff to take a third party value and NOI-focused approach vs. a REIT occupancy-focused approach.
- Developed personal relationships with every leasing firm and the top 30 brokers throughout the Jacksonville market.
The Results
- Increased weighted average lease term throughout the portfolio.
- Delivered message and expectations to the market that the portfolio will only execute leases with term of 5 years or more without termination options.
- Strategically spread out lease expiration dates for several large tenants, which mitigated extreme rollover exposure in any specific year
- Brought NOI and occupancy to levels above the benchmarked underwritten goals at the end of
Fiscal Year 1 and each year thereafter - Positioned portfolio well for both a single exit transaction or a diversified retail exit by building or business park.
