A Case Study: The Repositioning of 1999 - Step 3

SEPARATE TENANCIES

  • Consummated the lease at above market rents ($30+/sf with GSA credit) while minimizing the impact the IRS has on building tenants and market perception:

  • Sequestered the IRS to the middle elevator bank so tenants in the upper and lower elevator bank have virtually no contact
  • Invested $400k in a proprietary dual elevatoring system for IRS floors vs. other user floors to provide express, segregated service for IRS and non-IRS tenants
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    INTENSIVELY MANAGE OPPORTUNITY

  • The building was remeasured, adding 43,175 sf to rentable inventory while retaining a conventional market common area factor
  • Operating expenses were reduced by $1.21/sf
  • The lobby and floor common areas were redeveloped and amenities consolidated on the mezzanine level for $2 million or <$3 per square foot
  • The shuttle program cost at roughly $80,000 per year or $.12/sf is an entirely escalatable expense; parking revenues were increased 100%
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