Revitalizing a failing office campus
FORT LAUDERDALE CROWN CENTER
Opportunity:
This 430,000 square foot office park, with 6 buildings on 24 acres had gone through 2 bankruptcies and was run by a court appointed trustee. The property was 35% vacant, and an additional 35% was expected to become vacant at lease expiration. The property suffered from tired architecture, deferred maintenance, poor management and a deservedly poor reputation in the brokerage community. Existing lease rates were well below the area averages.
For most would be buyers, ownership was an obstacle. To Midgard it was an opportunity: 47 different beneficial owners held different percentages in a voting trust.
Revisioning:
Control the property by negotiating and acquiring all 47 individual interests. Respond to immediate issues by revitalizing management and systematically performing deferred maintenance. Establish a professional office campus identity and a comprehensive renovation plan including interior space improvements at new higher standards, lobby and façade changes and new landscaping and signage. Restore tenant faith in new ownership and management through action, successful performance, and communication. Reach out to the business and broker communities with the newly implemented business plan.
Result:
Midgard acquired 100% of the beneficial interests. All programs were successfully implemented. A majority of the tenants were retained at the end of their lease terms at higher lease rates. The campus was revitalized resulting in higher lease rates, higher occupancy rates that were above area averages and operating costs below the median average for the area.
The business and brokerage communities were brought back into solid participation with lease-up programs.
Crown Center was revisioned into an attractive modern work environment of the highest quality in its competitive price category.
