Targeted factual interventions that enhance a property in line with the market and, at the same time, a consistent marketing strategy: these are two typical tools in our asset management toolbox.
It requires a detailed understanding of a potential positioning in the general market and in the micro location. In one of our first mandates for Barckhausstrasse 1, we were able to demonstrate our expertise by using the tools from our newly-created professional toolbox.
Demolition? No! Value boost for Barckhausstrasse
Barckhaus FrankfurtThe property
Barckhausstrasse 1 is a flexible office building in a central Westend location. The 9-storey T-shaped building offers up to three rental scenarios per floor and has a prestigious entrance and generous parking situation.
Facts & figures
| Property name | Barckhaus |
|---|---|
| Address | Barckhausstrasse 1 in 60325 Frankfurt/Main |
| Submarket | Westend |
| Asset class | Office |
| Year of construction | 1964 |
| Lettable area | 6,000 sqm |
| Landlord | Art-Invest |
| Activities | Sell-side mandate, Repositioning, Landlord Representation |
| Mandate period | 2012-2013 |
The challenge
Barckhaus is a property from the 1960s which we had the pleasure of managing when it was purchased by the new owner Art-Invest. In this, our third asset management mandate, we were able to play to all our strengths to counter the long-standing vacancy rate of over 60%. Nobody in the market believed in the building; the previous owner even wanted to push for its demolition. During the mandate, we developed some of our tools that are still with us today.
Letting needs strategy and a letting strategy sometimes has to be bigger than an attractive rental level. We shaped a new market trend for the property with two unmistakable signals. Firstly, an upgrading package for the lobby, entrance area and roof terrace and secondly, a revised rental offer that could be prepared for rental enquiries within 24 hours.
The method
Active asset management with effective measures and tools
Development of a TI & CapEx plan
Development of a letting and pricing strategy
Development of a property-specific marketing suite
Marketing of vacant space by returning the space to its shell condition
Location-specific marketing of the property
It required an extensive programme to reposition the space credibly in the market. For this purpose, we prepared a detailed marketing concept with the owner including a TI & CapEx plan, a letting strategy based on the possible rental scenarios and a credible and competitive pricing strategy. The objective was to present the most attractive property in the small-space category in the Westend district.
In order to put together the most attractive package possible for the target group, the entrance area and lobby were refurbished, a roof terrace was added and the rental service was so well conceived that we were able to send the target group a complete rental offer with space planning and lease contract within 24 hours.
In this property, we first implemented our Oceans White Rooms concept which involved the dismantling of the previous tenant’s fit-out, removing all non-load-bearing walls and showing the space completely undeveloped in fresh white
New property particulars
New marketing suite
New TI & CapEx programme
The result
Building Value: The positive results from Asset Management and Investment Advisory for Barckhaus
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- Almost 100% occupancy within 12 months
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- Sale within 12 months
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- Reduction of long-standing vacancy and stabilisation within the mandate
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- Creation of a higher market value product. This was manifested by the successful sale to a national investor. Value uplift of more than 60% achieved during the holding period (purchase prices at acquisition)
The elimination of structural vacancy to achieve almost full occupancy within one year is fundamental to enhancing the value of a property on a sustained and evidential basis. This represents a new professional capability offered by our Investment Advisory team: success in both sales and acquisitions.