Asset Services Success Stories
California Bank and Trust (formerly Vineyard Bank)
Distressed 40,000 square foot fractured office condominium building sold in bulk to a user.
Challenge:
Provide a property valuation for a bank-owned building that incorporated distinctive exit strategies. This asset was an office building previously converted into medical office condominiums with the addition of a parking structure and other improvements. After two medical condo sales, the asset was foreclosed on by the bank when the medical condo sale market stalled and the previous owner was unable to service the debt.
Solution:
Voit created a customized Asset Business Plan for this property. A site-visit to the property by Voit's team of local leasing and sales professionals, construction consultants, and a financial analyst resulted in an all encompassing analysis of the property. Voit delivered a full package to the client that presented the bank with four operational and exit strategies.
Result:
The Asset Business Plan strategies clearly indicated that the best option for the bank was to sell the asset immediately, which maximized value and mitigated the most risk. Voit then presented the bank with a qualified user/buyer and was able to close the transaction. The ultimate sales price of the building was supported by the financial underwriting in the Asset Business Plan, which aided in the bank making quick decisions, and translated into a smooth closing.
Fujita
Voit acquires $200 million distressed portfolio from foreign investor and adds value for all parties.
Challenge:
Fujita Corporation needed to quickly divest itself of a large portfolio of distressed industrial parks and properties, ensuring that the sales would go through smoothly as Fujita was pulling out of its United States real estate investments entirely. The company also wished to provide for its United States employees.
Solution:
Voit Real Estate Services was able to gain the confidence of the seller and to structure a 15 month, three-acquisition strategy. Voit was able to acquire 3.26 million square feet at a cost of $200 million. Voit then put its asset services team to work, disposing of low-quality assets, combining Fujita's property management staff into its own property management services team to manage the longer-term hold properties. Voit then enlisted its in-house brokerage professionals to lease up and reposition the stronger assets.
Result:
Voit created a triple win for the sellers, for itself and for its shareholders. Voit's financial strategy created a positive outcome for the seller based on a fair price and a rapid timetable. Voit's asset services, brokerage and management teams came together to create a positive working environment with the former Fujita team members and in increasing the value of the properties. And finally, Voit's asset business plan of quick sales of the smaller income flowing properties and longer hold term for those properties on which increased management, leasing and repositioning could add value created a strong positive financial return to the investors during the ensuing 48 month period.
National Financial Services Company
230,000 SF asset / property management and disposition of three commerical office buildings
Challenge:
A developer with three real estate developments stalled in the lease-up phase with low occupancy and declining market conditions filed for bankruptcy. The lender then obtained a Relief from Stay and was ready to proceed with foreclosure but needed receivership and property management services to preserve the collateral and operate the property during the process to ensure smooth operations and tenant satisfaction.
Solution:
Voit Asset Services stepped in seamlessly as Receiver and took control over asset and property management for office space totaling 230,000 SF located in three cities in Northern and Southern California. Tenant concerns were addressed and day-to-day operations were quickly established while a new, improved marketing strategy was analyzed to kick-start leasing activity.
Result:
The court and lender are convinced that the office buildings are being operated professionally and their value is being preserved and enhanced during foreclosure. Leasing activity is up and existing tenants have expressed confidence in building management and their future tenancy as evidenced by fewer lease terminations and higher levels of renewals. Voit was also retained as the full-time asset manager post-foreclosure and continues to increase value for the client today.
Large National Company with Global Reputation
500,000 SF Asset Disposition of 13 Properties
Challenge:
A large financial institution foreclosed on a cross-collateralized portfolio exiting out of bankruptcy with high vacancies, partially completed construction and neglected tenancies. The institution needed to transition the portfolio to new management, work with the client to determine appropriate lease and sale brokerage terms, transfer property accounting functions and create a new order of organization and responsiveness without increasing risk exposure.
Solution:
Realizing their scarcity of resources and expertise in dealing with everything from day-to-day operations to successful dispositions, the client contracted Voit Asset Services to serve as surrogate owner of a 500,000 SF distressed property portfolio that included office, industrial, retail, land and multi-family real estate properties.
Result:
Utilizing every aspect of the asset services platform, Voit's team of Asset Service Professionals served as the portfolio's single process service provider. Working closely with the client they used their experience to facilitate a smooth ownership transition and create maximum asset value while mitigating any risk.
