With a building deteriorating from water damage and the impending threat of defaulting on a bank loan, the ownership group of the
"When you walk into a building and see that a first floor tenant has ripped out part of the wall board because of repeated water damage, you know that you are taking over a challenging property," said
"But that is what we do. It's what we know and what we're good at. We get in and reassure tenants that it's a new day. We get vendors back to work, gain the confidence of the lender and stabilize the property to save the investment."
For the Jewell property, with just more than 90,000-square-feet and a value of
"There was a trifecta of problems," Sadler said. "Unhappy tenants, no money to fix the damaged building and a loan that was going to go into default."
For quick turnarounds of a property of this magnitude, "action is required," said
Jewell's ownership group selected Allegiancy based on the results of a rigorous analysis of competing firms led by Rathbone, who helped the property owners get away from the value destruction and neglect of the previous asset managers.
"We look for a manager that has a track record of putting the owners' interest first and getting the job done right and done quickly," Rathbone said. "Owners who have taken my recommendation to work with Allegiancy have been pleased with their performance because they manage the properties as if they were their own, leveraging their expertise to make decisions with the highest impact. The owners know that their investment is in good hands."
Immediately after winning the contract, Allegiancy's senior leadership took action, arriving on site at
"As is typically the case, an ongoing lack of attention to detail creates a greater need for capital down the road," Simons added, noting the gross water damage and other maintenance issues leading to the deterioration of the building itself. "Fortunately for the owners and tenants, we quickly assess, correct and lead forward."
Why such quick results? While it's still early in the contract, Allegiancy has already created and executed a new capital plan, worked directly with the bank to restructure the debt to prevent the owners from going into default and restored confidence in the current tenants, helping build the necessary forward momentum to gain new tenants in the building and increase cash flow.
Allegiancy's focus on each property as a stand-alone business allows them to align the goals of all stakeholders – property owners, tenants and their own investors – and get results.
Among the many success stories for Allegiancy is
Allegiancy also has recently won new asset management contracts in
# # #
Allegiancy is changing the business of asset management for commercial real estate owners and investors. With an advanced technology platform and singular focus on serving as the owners' advocate, the company brings fresh vigor to an often poorly understood business. Combining its proactive Value Assurance operational rigor with an intense focus on cash flow and profitability, Allegiancy is expanding on a track record of more than four decades of success.
More information about Allegiancy may be found at http://www.allegiancy.us.
To schedule an interview with Allegiancy's leadership, contact
Read the full story at http://www.prweb.com/releases/2014/07/prweb12023657.htm
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