Case studies

March 1, 2014

Jobplex global headquarters

Real estate investors typically go to the market in search of a property that fits their desired parameters. Generally speaking, the more specific of a need, the more difficult it becomes to find an investment to satisfy that need. Hoffmann Commercial Real Estate prides itself on being able to adapt, access and deliver on some of the most strictest of requirements all the while maintaining the company's standard of excellence and value maximization. This is the case study of acquiring a space to match a company’s strict space and location criteria.

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History

HCRE was given the task to find a property in Chicago’s West Loop neighborhood suitable for the relocation of the Jobplex Inc. global headquarters, all while maintaining HCRE’s core investment criteria. The client’s criteria required that the space be within a five minute walk to/from the train station, a minimum of 20,000 square-feet of immediate occupancy, a Class-A loft and naming rights to the building.

Process

The identification of a property in Chicago proved to be a difficult task. Several factors, including the explosion of the technology giant Google in the loft district, significantly hindered the process. HCRE, through its expansive network of brokers, identified three properties that fit the criteria established by the board of directors of Jobplex. Further discovery narrowed the search to the Haymarket Building given the following factors: The property could immediately accommodate the space requirements of Jobplex; the property was within two blocks of the train station; the availability of naming rights on the building; the property could be repositioned given the below market rents in-place.

Results

The Jobplex global headquarters building went through the HCRE value optimization plan, successfully repositioning the asset in the market. The asset reestablished market rates and effectively increased the assets value by more than 50 percent. The net operating income increased as a result of both an increase in rental rates and a decline in operating expenses due to economies of scale. The property is now being placed within the CMBS market two years ahead of schedule.

Click here to read the press release referring to this case study.