A four-story professional office building in a growing submarket of Phoenix was underperforming and in dire need of an upgrade and capital investment. Irgens identified this opportunity and performed comprehensive due diligence to determine whether or not the property was a worthwhile investment. During this process a plan was conceived to co-locate two existing tenants to the first floor, thereby freeing up the entire fourth floor, which could then be marketed to larger prospective tenants. Irgens also spent considerable effort identifying, pricing and evaluating capital improvement projects that would add value to the building, making it more attractive to potential tenants. With a solid plan in place, Irgens proceeded to successfully acquire 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 and the ground floor restrooms and elevator lobby were transformed. Deficiencies in the mechanical systems were addressed to increase the building’s efficiency and comfort for tenants. The result of this capital investment and the resounding work increased tenant satisfaction, it elevated the property’s profile in the marketplace to support renewed leasing success and it allowed the brokerage team the opportunity to attract larger tenants to the property at a higher rent, which translates to a better investor yield.