Listen to Our BlogsRAWAAL Properties LLC: Strategic Acquisition and Maximizing Asset Value Through Expert Leasing
Client Profile
RAWAAL Properties LLC is a forward-thinking investment firm specializing in commercial real estate acquisitions and asset management. With a focus on identifying value-add opportunities, RAWAAL Properties aims to transform underutilized properties into high-performing assets.
Partnership with Allies Commercial Realty
In March 2023, RAWAAL Properties LLC partnered with Allies Commercial Realty to acquire a prime commercial property located at 10115 East 59th Street. Leveraging Allies’ market expertise and strong industry relationships, the partnership aimed to secure the property in a competitive bidding environment and maximize its investment potential.
Opportunity and Challenge
The property at 10115 East 59th Street presented a significant opportunity due to its C-7 zoning—the heaviest commercial zoning available in Marion County—permitting uses like truck maintenance facilities and heavy equipment storage. However, the acquisition faced several challenges:
- Competitive Bidding: Multiple bidders were interested, with many willing to offer higher purchase prices.
- Property Condition: The site required substantial improvements, including cleanup and site enhancements, to unlock its full potential.
Analysis
Allies Commercial Realty conducted a comprehensive market analysis and formulated a strategic acquisition plan. By emphasizing RAWAAL Properties’ readiness to close and their own reputable track record, Allies convinced the seller to accept an offer of $1.3 million, despite higher competing bids. The seller’s familiarity and confidence in Allies played a pivotal role in this decision.
Versatile 5.67 Acres Site with 5,058 SF Facility in Indianapolis, IN.
Our Success Story
- Strategic Acquisition: Allies’ negotiation skills and trusted relationship with the seller secured the property for RAWAAL Properties at a favorable price.
- Property Enhancement: Post-acquisition, RAWAAL Properties undertook significant improvements:
- Cleanup Operations: Removed large amounts of logs, timber, debris, and brush, enhancing the property’s appearance and functionality.
- Site Development: Converted unused land into functional space with asphalt millings, expanding areas available for outdoor storage.
- Building Upgrades: Cleaned and refurbished the existing building to attract quality tenants.
- Effective Marketing and Leasing: After a year of enhancements, RAWAAL Properties enlisted Allies to market the property:
- Comprehensive Marketing Campaign: Developed digital flyers, drone photos, and videos; installed signage; and listed the property on platforms like LoopNet, Crexi, CoStar, and the Allies website.
- Broker Outreach: Conducted email campaigns targeting the brokerage community, generating substantial interest.
- Securing a National Tenant: Allies’ efforts attracted a national credit tenant who signed a five-year lease with multiple renewal options. Remarkably, the negotiated rental rate was 185% above RAWAAL Properties’ debt service, significantly boosting the property’s cash flow.
Results:
- Maximized Return on Investment: The lucrative lease agreement enhanced the property’s profitability, providing RAWAAL Properties with substantial income over the lease term.
- Increased Property Value:The combination of property improvements and a high-quality tenant elevated the asset’s market value.
- Successful Collaboration:The seamless partnership from acquisition to leasing showcased Allies Commercial Realty’s ability to deliver comprehensive real estate solutions.
Conclusion:
RAWAAL Properties LLC’s strategic acquisition and enhancement of 10115 East 59th Street, facilitated by Allies Commercial Realty, exemplify how expert guidance can transform a property’s prospects. Through adept negotiation, thorough marketing, and securing a premium tenant, Allies helped RAWAAL Properties unlock significant value. This case underscores the impact of strategic partnerships and proactive asset management in achieving commercial real estate success.
In Other Case Studies
ARISE Substance Abuse Care Services: Overcoming Unique Zoning Challenges to Secure the Ideal Treatment Facility
ARISE Substance Abuse Care Services, LLC was established in 2023 in Central Indiana.
Read More
CTG International: Successful Tenant Representation for Relocation in Indianapolis
CTG International (North America) Inc. faced a significant challenge with their 32,000 SF warehouse space in Park 100, Indianapolis, IN.
Read More
Dana Mannix Gymnastics Center: Strategic Expansion and Lease Negotiation in a Rising Industrial Market
Dana Mannix Gymnastics Center is a premier gymnastics facility dedicated to providing high-quality
Read More