Strategic real estate planning reveals sale and relocation as the preferred option

Client
  • American Coating Association
Space
  • 17,498 sq. ft.
Industry
  • Association
Locations
  • Washington DC
  • Bethesda
  • Tysons Corner
Services Provided
  • Transaction Management
  • Project Management
Cresa Team
  • Lucia Hedke
  • Christie Minch
  • Mindy Saffer

Client Objectives

Cresa was retained by American Coatings Association (ACA). ACA owned a 19,500 rentable square foot property in Washington, DC. Cresa was hired to prepare a full Strategic Real Estate Plan to understand the costs associated with upgrading the building to meet today’s technological, operational and design standards. Because the ACA owned the property since 1939, the board and staff were emotionally connected to the building and its history.

Through the development of project goals and space programming, it became apparent ACA had grown out of the property—and the cost associated with retro-fitting was prohibitive. The board ultimately decided that, for a certain price, they would sell and relocate versus renovate.

Results

Cresa evaluated the potential purchasers; and based on the property attributes, it was determined the embassy community would provide an ideal buyer. Through direct marketing (e.g. mail, calls and advertisements), Cresa created a bidding war for the property and secured a buyer who purchased the property at a price of $1.6M more than the required sale price. Cresa created competition within the community using ACA’s strong financial position and longevity of performance. Using the space program and project goals as consideration for identifying potential relocation opportunities for ACA, Cresa ultimately negotiated a transaction for ACA at 901 New York Avenue, NW, that offset 100% of the cost of build-out, relocation and purchase of all new equipment and furniture.

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