The Power of Teamwork: Sturges Property Group Drives Sale and Renovation of Property to Houston-Based Investor

One of the keys to profitability in real estate transactions and property management is efficiency. Working with a respected organization that has deep internal expertise and strong relationships with outside service providers can make all the difference.

The sale and renovation of 3030 Lake Avenue is a prime example.

Renovating a Commercial Property to Meet Buyer Expectations

The long-time owner of a multi-tenant office building was interested in selling the property, and they approached Sturges Property Group for assistance. Getting vacant space leased and improving the asset’s financial performance was essential to receiving a solid offer for the building. 

With the first step accomplished, we listed the property for sale, and it caught the eye of a Houston-based investor group. DOM Partners, LLC purchases similar properties all around the U.S. and saw the tremendous potential in this particular one. After touring multiple properties in the region, they chose 3030 Lake Avenue.

Being Transparent on the Transaction

The client was encouraged by our transparency about the property, which included a detailed inspection report from our sister company, Maintenance Management. They also appreciated the clear, accurate, and complete financial details we provided. After reviewing all the relevant materials, DOM Partners moved forward and enjoyed a smooth, problem-free closing.

However, the Class C building needed significant work to bring it up to the buyer’s standards—approximately $250,000 in improvements. As a property that requires attentive leasing and property management to ensure ongoing profitability, DOM Partners needed an experienced, full-service, local partner. As one of the largest and most respected commercial real estate companies in northern Indiana, Sturges Property Group was the logical choice.

Collaborating with a Team They Could Trust

Another key to successful real estate transactions and commercial property operations is trust. An owner has to believe that the team working on their behalf can meet their needs. Our conversations with DOM Partners and the presentations we gave reassured them about our qualifications to oversee the renovation and subsequent leasing and property management. 

When DOM Partners got to know TI Source, our project and construction management sister company, that gave them the confidence that all facets of this engagement would be handled professionally and efficiently. Their comfort level increased as the team got to work. 

Keeping Current Tenants and Attracting Others

3030 Lake Avenue needed to generate the ROI the client was looking for, which meant retaining existing tenants and attracting others to increase building occupancy. That’s no easy feat during a comprehensive renovation, but TI Source and Sturges rose to the occasion.

Our team addressed this challenge by being open and honest with tenants about the transaction and the new owner’s renovation plans. Not surprisingly, the tenants were skeptical at first. The building had several flaws that had lingered for some time, so promises of improvements were not going to sway them. What got their attention, however, were tangible materials we presented in meetings, such as renderings and color palettes.

Once they saw our action plan, DOM Partners was more optimistic and enthusiastic for the project to begin. Those feelings were amplified when we tackled several of the tenants’ maintenance requests even before the renovation began.

Addressing Functional and Aesthetic Issues

Turning a dated building into a high-performing commercial property requires seeing the big picture. That includes its functional and aesthetic characteristics. The structure’s visual appeal, from landscaping to carpet and paint, left much to be desired. More importantly, there were structural issues in the tenant suites, including roof leaks.

The seller had applied some “band-aid” fixes through the years, but they were no longer effective and not the type of repairs that make tenants happy in the long term. So, building occupants were eager for our team, in collaboration with TI Source, to oversee a comprehensive upgrade.

Communicating Effectively to Keep the Project on Track

The 3030 Lake Avenue project involved a large scope of work. In that type of scenario, it’s easy for a plan to go “off the rails”. However, our team knows from experience that effective communication ensures that everyone continues moving steadily and predictably toward the end goal.

Whether it’s tenant finishes, updating exterior signage, repairing parking lots, or working with Nexus Technology Partners, another of our trusted sister companies, on networking and card access systems, it’s crucial to keep everyone aware of objectives and timelines and provide regular progress updates to stakeholders. These actions prevent delays and keep projects moving forward.

Our team made it a top priority to keep lines of communication open and information flowing throughout this major renovation. Because of this, everyone involved experienced greatly reduced stress levels and found the process exciting and enjoyable.

Achieving Impressive Results

Despite the many challenges associated with an ownership transfer and subsequent updating of an occupied commercial property, our team produced an outstanding outcome for DOM Partners, LLC.

First, the combination of showing current tenants the building’s full potential and minimizing disruptions as the construction team worked toward it resulted in zero loss of leases. Every occupant recognized that the new owner was committed to positive changes and saw that staying in their space was best for their business. Some even expanded their footprint within the property.

Our team also succeeded in generating significant interest in 3030 Lake Avenue for new tenants—growing occupancy from a mere 40% at closing to 70% and rising today. Pending leases will increase the figure to 80-90%.

And, of course, that large increase in occupancy has led to remarkable growth in the property’s profitability. DOM Partners is so pleased with the results of this engagement that they’re actively looking for other similar properties with Sturges Property Group as their brokerage, renovation, leasing, and managing partner.

The term “one-stop-shop” is a bit of a cliché. However, finding the right organization to collaborate with on real estate transactions and ensuing property management is a recipe for success. As DOM Partners discovered, in the northern Indiana region, Sturges Property Group has the experience, integrity, and trusted network of service providers to turn buildings with great potential into properties with tremendous value.

Learn more about our affiliate companies that helped transform 3030 Lake!