Challenge
The Albert M. Higley Co. (a|m|Higley), a construction firm in Cleveland, Ohio, was quickly outgrowing their 15,000 square foot headquarters. The firm was also extremely parking constrained, especially when hosting large project team meetings. Although a|m|Higley had recently renovated their headquarters and expressed an emotional attachment to their space, they knew they had to seek new opportunities that could accommodate growth and additional parking.
a|m|Higley engaged Allegro as they were considering the purchase of a dilapidated building located near their existing headquarters, with plans to maintain both spaces and split employees across two buildings.
Solution
Instead of moving forward with the purchase, Allegro devised a real estate strategy plan for the client after assessing the client’s long-term needs and evaluating appropriate properties in the vicinity. One option involved adding a floor to the existing building as well as purchasing a property directly across the street that would allow for expanded parking. While this solution would have allowed a|m|Higley to maintain and expand their visibility in the area, it proved to be a short-term fix. They realized that in order to find an effective long-term solution, they would need to expand their search radius.
Allegro began searching along the Innerbelt to find properties with similar characteristics to the client’s current headquarters, focusing on accessibility, parking, and visibility. A few opportunities were identified, but after analysis, the cost to renovate the properties proved to be too high.
Allegro then identified a building at 3636 Euclid Avenue; however, at the time, the owners of the property were looking to lease, not sell. They had lease proposals on the table, so Allegro needed to move quickly in order to persuade them to forego those offers and work through the necessary terms and conditions in order to sell.
Ultimately, Allegro assisted a|m|Higley in purchasing the three-story, 25,000 square foot building on Euclid Avenue. Not only is the space more collaborative, it gives the client an excellent corporate image with high visibility and offers nearly 80 indoor and outdoor parking spaces. Additionally, it allows a|m|Higley to remain in Midtown, where the company has been located since they were founded in 1925.
When the new headquarters was secured, Allegro was tasked with the disposal of the client’s existing headquarters property. Allegro connected with a buyer in the market who happened to be considering one of the properties a|m|Higley had previously considered before realizing the costs of renovation were excessive. That buyer had also concluded the building renovations would be too costly, and Allegro was able to show them the a|m|Higley headquarters. By possessing an astute market awareness and capitalizing on relationships, Allegro was able to perform effectively for the client, executing both the new headquarters transaction and former headquarters disposition.
