This four-story professional office building, located in a growing submarket of Phoenix, was underperforming and in dire need of upgrades and capital investment. Irgens identified the opportunity and performed comprehensive due diligence to determine the property’s potential value. During this process a plan was conceived to co-locate two existing tenants to the first floor, thereby freeing up the entire fourth floor and creating an opportunity for larger prospective tenants. Irgens also spent considerable effort identifying, pricing and evaluating capital improvement projects that would add value to the building and make it more attractive to potential tenants. With a solid plan in place, Irgens successfully acquired 501 Gateway and immediately began renovating and modernizing the building.
The $1 million investment by Irgens included interior and exterior improvements, extensive landscaping and new signage. The lobby was remodeled, the ground floor restrooms and elevator lobby were transformed and deficiencies in the mechanical systems were addressed to improve building efficiency and tenant comfort. Ultimately, the capital investment and transformative work increased tenant satisfaction, elevated the property’s profile in the marketplace and supported renewed leasing success and allowed the brokerage team the opportunity to attract larger tenants to the property at a higher rent, which translates to better investor yield.