Challenge
Recovery Resources has several locations in Ohio City. The program areas and working groups in Ohio City had grown out of their space with no remaining room for expansion. Any new location would need to remain within this tight geography, to continue to serve the population of the near west side. In addition, it had to have easy access on major public transportation arteries, an abundance of parking, be cost effective and have approximately 30,000-40,000 square feet available. Given the age of properties, parking constraints and general asset classes on the near west side, it was a difficult requirement. The transaction had a number of unique challenges including but not limited to, property identification, a challenging buy-out of its Ohio City lease, the identification of a developer, the placement of unconventional debt and critical deadlines that had to be met.
Solution
After exhaustive market searches, Allegro identified a handful of properties that met requirements. The Pearl Road Professional Building met many of the program requirements – geography, public transportation, and easy access to parking. Allegro acted as the lead service provider on this initiative, managing multi-disciplinary teams, action items, tasks and communication with the project steering committee and Recovery Board. Specifically, Allegro led Recovery Resources through the site selection process, identified an appropriate developer, performed financial analyses and modeling, negotiated all business terms with the landlord, a lease buyout with a new buyer of the Ohio City property, and structured a unique debt instrument critical to the success of the project.
Ultimately, Recovery committed to a 15-year lease of the entire 42,000 square-foot building located at 4269 Pearl Road. Previously vacant for years, this building represents a new chapter for this organization. A chance to re-image the brand, re-work how staff operates and re-position the organization for growth into the future. Not to mention breathe new life into a struggling building and help restore a major block in Old Brooklyn.
