Challenge

This property was a unique two 50,000 square-foot building campus, with one of the buildings leased to a national chlorine distributor called HASA. The existing HASA lease had eight years remaining in a modified gross recovery structure.

 

Strategy

Through a broad marketing approach, the agents were able to gather interest from multiple groups for the vacant 50,000 square-foot building and use that as a point of leverage to go to HASA and renegotiate their lease to take over the entire campus on a 12-year lease and convert their lease to a single tenant NNN form.

 

Results

This boosted investor cash flow and also made the investment significantly more attractive for a future exit to a passive cap rate investor.