Commercial Real Estate & Management
404.892.7700
Challenging times, creative solutions.
Overcoming neglect and financial difficulties: The 131 Ponce de Leon Avenue Building
Situation: In 1990, this 37,000 square foot multi-tenant office building, and adjacent 7,000 square foot empty shell building were taken back in foreclosure by the second mortgagee. These buildings' problems included a first mortgage in default, unpaid real estate taxes and utility bills, and years of deferred maintenance. Tenants were concerned about the appearance and upkeep of the buildings, and about security. The neglected state of the entire property made it difficult to attract high quality, stable tenants.
Solution: The Brun Company was retained to lease and manage the property. We established our offices in the multi-tenant office building and began to meet with tenants. Our goals were to collect unpaid rents and to assure tenants that maintenance and security issues would be corrected as soon as possible. Over the following months, the office building's cash flow was carefully monitored. Real estate taxes were paid and maintenance issues were prioritized and corrected.
Medical office space is in short supply in the midtown Atlanta area, and the 131 Ponce de Leon Avenue Building is situated near three city hospitals. The Brun Company developed a successful leasing program for the building aimed at the medical community. Between 1991 and 2007, The Brun Company returned $2.3 million to the owner.
In late 2006 the Owner (who used to be the second mortgagee) asked The Brun Company to sell these two buildings, which we successfully did in early 2007, at a price over four times greater than the owner's original investment.
The Brun Company now represents the new owners. The property is slated for redevelopment and The Brun Company's focus has shifted to a caretaker status as we concentrate on returning as much money as possible to the owners prior to its redevelopment. Maintenance expenses have been cut to those repairs essential to maintain the property and fulfill the landlord's obligations to the tenants as specified in the lease, until the entire parcel becomes ripe for re-development.
Copyright © 2010 The Brun Company. All Rights Reserved.