Repositioning family portfolio and addressing capital improvements

Situation

Lucky Commercial owns over 3,000,000 square feet of warehouse space throughout the country, a third of which is concentrated in Miami-Dade County. The assets were mostly older manufacturing warehouses, some requiring extensive renovations and rent adjustments.

Strategy

• Determined which properties have leases expiring soon and identified the capital improvements required to justify new rental rates.
• Supervised required improvements and negotiated new lease terms with new or existing tenants.
• Refused to renew leases with problematic tenants who create nuisances for neighboring tenants.

Results

Successfully renegotiated and renewed existing, quality tenants, vacated problem tenants and renovated the property to enhance the overall presence. The result was substantially improved asset performance and valuation.