July 18 2014
Allegiancy Awarded Contract To Save Ohio Commercial Real Estate Office Property
Richmond asset management firm selected to take charge of the multi-million dollar Northwoods II property to enhance operations of the building and return it to its stabilized value.
For immediate release
RICHMOND, VA: The owners of the 115,000-square-foot Northwoods II office complex in Ohio have selected Allegiancy to turn around their $10 million property, saving it from failure.
“The owners saw our track record of knowing what needs to be done and how to get it done quickly,” said Chris Sadler, President of Allegiancy, a Richmond, Va.-based commercial real estate asset management firm specialized in office buildings.
“A commercial office building is a stand alone small business, yet in most cases they do not have any leadership,” Sadler added. “We’re coming in to provide strategic direction and tactical execution. That’s what makes Allegiancy unique.”
Located in Columbus, Northwoods II is an office building with a current estimated value of $4.5 million. Its stabilized value of $10 million isn’t being realized because the previous asset manager allowed the property to drift.
“Our previous management group was not making much of an effort to lease the vacant space and they had no plan to salvage our investment,” said Paul Butrim of the Northwoods II ownership group. “Our lawyer suggested that Allegiancy had a good reputation for saving properties that were in trouble and after several conference calls we decided they were right for the job.”
That lawyer was Coni Rathbone, an Oregon-based attorney with the nationally known Zupancic Rathbone Law Group. Rathbone helped the property owners from a Tenant-In-Common group get out of their agreement with the previous, failing asset managers. She led a rigorous analysis of competing firms before recommending Allegiancy.
“In my experience, the quality that makes an asset manager successful is how well they pay attention,” Rathbone said. “It’s a simple concept, but unfortunately, inattentive asset managers are costing owners and investors tens of millions of dollars, we see it all the time. Allegiancy has proven they are an asset manager of choice because they ensure nothing slips through the cracks.”
Asset managers generally fail on two levels – inattention to the details and failure to act as if they are the owner.
“Little things are a really big deal around here,” said Daniel Simons, Chief Operation Officer for Allegiancy. “We look at a property as if we own it, like the dollars we are spending are our own.”
Allegiancy wasted no time in taking charge of the property to stabilize it. Sadler was on site “before the ink was dry on the contract,” he said, to personally evaluate the property’s condition and immediately implement the action plan for making the biggest impact and driving occupancy.
After 30 days under Allegiancy’s leadership, with new strategic priorities in place and a number of operational and physical flaws already rectified, substantial progress is visible.
Allegiancy’s biggest immediate hurdle at Northwoods II will be overcoming the 80 percent vacancy rate left when one tenant vacated late last year. The investments Allegiancy directed are already delivering results with improved leasing velocity and an early success – a current tenant doubling its office space – that is both a vote of confidence for Allegiancy and a clear indication that Northwoods II is on its way to a turnaround.
“With a little bit of elbow grease and hard work the property has the potential to offer owners increased return on their investment,” Sadler said. “We’re confident that we can turn that vacancy around and recover the millions these owners have lost.”
In the coming months, Allegiancy will continue to chart a strategic, long-term plan to lower costs and increase revenues. Among the tactics Allegiancy will employ include working on mortgage escrows issues and lowering the tax valuation.
“As asset managers, our fee revenue is aligned with the equity owners’ interest,” Sadler said. “We have a strong track record of doing what we say we are going to do to the great benefit of the owners who hire us.”
Allegiancy also has recently won new commercial real estate asset management contracts in Georgia, Florida and North Carolina.
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Allegiancy is changing the business of asset management for commercial real estate owners and investors. With an advanced technology platform and singular focus on serving as the owners’ advocate, the company brings fresh vigor to an often poorly understood business. Combining its proactive Value AssuranceSM operational rigor with an intense focus on cash flow and profitability, Allegiancy is expanding on a track record of more than four decades of success.
Headquartered in Richmond, Va., and led by a team of seasoned professionals with more than 100 years of experience, Allegiancy manages properties that have outperformed their peers by 45 percent since 2006. The company has more than $300 million in assets under management (AUM) and delivers to clients attractive returns and profitable, hassle-free investments in commercial real estate.
More information about Allegiancy may be found at www.allegiancy.us.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Allegiancy, LLC’s (the “Company”) present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the offering circular dated January 14, 2014 and filed by the Company with the U.S. Securities and Exchange Commission on January 15, 2014. The offering circular, and any supplements or updates thereto, is available on the EDGAR system located on www.sec.gov.
March 07 2017