In the fast-growing Southern California Inland Empire, Janez identified an opportunity to acquire an undervalued, multi-tenant business park in Riverside, CA. Built in 1987, the property featured five single- story office buildings totaling 138,000 square feet and was approximately 60% leased at the time. Given Janez's depth of experience and track record in successfully refurbishing older office properties, Janez immediately recognized that they could add-value to the office park. To acquire the property, Janez moved quickly, completing underwriting and market evaluation in short order, and placing the property under contract while other investors were still scheduling tours.

Undervalued Business Park Presents Acquisition Opportunity
Janez recognized the following opportunities when first evaluating a Riverside, CA undervalued business park.

• Lack of management and property maintenance
• Landlord was not billing contract expense reimbursements
• Owning partnership was not funding tenant improvements and was therefore not leasing space. Vacancy was 40 percent compared to 10 percent market average.
• Paint, landscape, HVAC repair, roof replacement and cosmetic upgrades were relatively inexpensive investments, but would benefit new leases and renewals.
• Rent was well below competitors.

Property Improvements Maximize Value
Following acquisition, Janez implemented property management strategies designed to maximize value.

• Renamed property "Summit Business Centre" to reflect its new positioning.
• Increased and stabilized occupancy.
• Began collecting contract expense reimbursements.
• Increased market rent to exceed proforma.
• Subdivided individual buildings for sale to users or smaller investors.
• Evaluated disposition of property ahead of schedule and sold at a profit to investors. 

Summit Business Centre
Following Renovation