CEG Investments sometimes buys commercial properties FOR our clients. And sometimes those properties need help.
That was the case for a property in Faribault, MN. The US Department of Agriculture (USDA) needed a building to house three government agencies that had particular requirements. After an extensive search, we found a property that wasn’t quite right, but we repositioned it for the perfect fit. Here’s what we did:
1. During the search process we kept our focus clear –– meet the client’s requirements. The parameters and needs didn’t limit our creativity or vision. With years of experience and flexible thought, we know if a property could be remodeled or repositioned to get the right space. The lease options were slim, so we knew CEG would need to step in and reposition a property.
2. Once we found the right space and successfully bought it, we needed a plan. With our clients and a team of architects, we adjusted blueprints by moving walls, doors, and HVAC to turn an empty building and former charter school into an efficient office space. Additional areas of the building were designated to lease out to other businesses to kick-start revenue.
3. We turned to another Service-Disabled Veteran-Owned Small Business (SDVOSB) to help with the construction phase. Because the original contract took so long to negotiate, the USDA’s prior lease expired, and they were working without an office. Time was of the essence. We needed to be on task and on budget, so we used our network to make that happen.
4. While the work inside was essential, the exterior also needed improvement. We updated lighting, added a new roof and gutters, painted the lower block, and installed hardy board throughout. The original vinyl siding was removed leaving the dated, drab beige and mismatched colors behind. A fresh, updated, and appealing hardy board exterior took the place of a sad, dreary, and forgotten –– almost abandoned –– look.
5. To improve the overall function and value of the property, we had to address the grounds and HVAC. With a small tree growing out of an air conditioner (you'll see it in the very first photo 😏), a decrepit lumber storage wall, and piles of junk tossed about, the overgrown landscaping needed to be controlled and all new HVAC installed. Many filled dumpsters were hauled away making room for newly graded and striped parking and sidewalks connecting front and back lots. New curbs and an electric-gated fence wrapped things up nicely.
Conclusion
When the right building was not available to lease for our clients, we bought one to reposition. With a strong team in place, repositioning a property can be the solution. We took a vacant charter school and turned it into a thriving building that not only improved look and function but made the city and neighboring property owners happy. Our clients moved into 10,000 SF of brand new office space built to their specifications. And CEG Investments added another strong asset –– with fourfold increased value –– to our portfolio while we helped a client get their deal done.
Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
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