CASE STUDIES
Property
Location: 323 N Gilbert Rd, Mesa, AZ 85203
Property Type: Child care center
Size: 7,798 SF
Challenges
Building Kidz is a renowned preschool and child care center with a national presence. As a past client of Menlo Group Commercial Real Estate, they sought to expand their operations to meet the growing demand in the Arizona market.
The client faced the challenge of finding suitable real estate for their expansion particularly in the specialized niche of child care centers. Limited inventory compounded by high demand posed a significant hurdle.
Actions
Menlo Group’s child care team embarked on a meticulous search to locate a suitable property for Building Kidz’ expansion. Despite the scarcity of available options, they identified a former child care center at 323 N. Gilbert Rd. in Mesa, Ariz. Although underperforming, the property held potential for success.
Leveraging their market knowledge and expertise in the child care industry, Menlo Group negotiated a favorable lease deal on behalf of the client that included securing a significant tenant improvement allowance to renovate the premises to Building Kidz’ standards. The negotiated lease terms encompassed fair rates with renewal options and a 10-month abated rent period.
In conjunction with Menlo Group’s in-house project management team, the client’s project was streamlined and cost-effective. This collaborative effort ensured a simplified and less stressful experience throughout the process.
Results
Through the combined efforts of Menlo Group’s brokerage and project management services, Building Kidz successfully established and opened a brand new child care center to serve families in Mesa, Ariz. The strategically negotiated lease terms and efficient project management enabled the client to expand their reach within the community while ensuring the formation of a fully licensed center that is sure to be profitable now and in the future.
Property
Location: 700 E Baseline Rd, Tempe, AZ 85283
Property Type: Professional office
Size: 7,723 SF
Challenges
When the owners of 700 E. Baseline Rd. purchased the building, they acquired a property in a precarious state. The building was only half occupied, and all existing leases were well below market value. Complicating matters, the previous property owner had been shouldering expenses that tenants should have covered, and exorbitant maintenance costs added to the owners’ financial strain. The property was in the black, but its potential remained untapped due to these operational inefficiencies. Compounded by a market in a state of limbo, strategic intervention was imperative.
Actions
Representing the owners, the Menlo Group Property Management Team stepped in with a holistic approach to revitalize 700 E. Baseline Rd. Our first task was to establish transparent communication channels with existing tenants. Through an open dialogue, we clarified responsibilities and ensured that tenants covered their designated costs. Leveraging our expertise, we successfully renewed all expired leases at new, competitive rates without losing a single tenant.
For the vacant suites, Menlo Group Director Nicholas Aldini swiftly found tenants through effective marketing strategies, maximizing the property’s income potential. To further relieve unnecessary financial burdens, we also renegotiated maintenance contracts.
Results
One year after Menlo Group took charge, the transformation was remarkable. Not only did we retain all existing tenants through successful lease negotiations, but we also filled the vacant suites. The strategic realignment of responsibilities led to a significant reduction in financial strain. Now a fully occupied building, 700 E. Baseline Rd. is operating in the green, which showcases the power of strategic property management.