Challenge
ShoreBank Enterprise Group (SBE), which provides funding for city-based, early-stage, and growing companies in Northeast Ohio, assumed ownership of a large office and industrial building to serve as an incubator for several of its clients. The property, after a decade of ownership by SBE, was more than 50% vacant, managed by internal staff without property management experience, in poor condition, and was experiencing sizable financial losses which were burdening the financial health of SBE. Allegro was engaged to assess the property, identify critical issues and gaps, and develop a corrective plan of action to enhance the asset for SBE.
Solution
Allegro conducted a real estate assessment which addressed the asset and facility management functions of the property. The asset management review focused on areas including lease administration, capital planning, financial administration, and marketing. The facility management review evaluated structural management, systems management, maintenance and cleaning, and internal personnel. Allegro compared the findings to industry benchmarks and identified gaps which required reformative action.
Allegro conducted interviews and working sessions with key stakeholders and board members to assess the value of the property related to the mission of the organization. Results of this strategic assessment were shared with the board to help manage expectations between stakeholders and board members and to qualitatively identify the intrinsic value of the property to the organization.
Allegro incorporated the results of the real estate and strategic assessment to model an action plan for the property. The plan addressed areas of concern and ways to leverage the asset financially and strategically.
