Asset Repositioning

Asset Repositioning

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Studio 1112 HC provides the unique service of assisting our clients in maximizing their asset through Real Estate Asset Repositioning.  Most properties do not stay the way they’ve been built. Our team of Real Estate and Design Professionals will work with you to maximize your buildings value, increase your profits and insure that your asset performs at its highest level.

Real Estate Asset Repositioning is the strategic use of renovations and improvements on properties in order to change its place in the marketplace. This can range from renovations that upgrade a building to be more in line with modern buildings, to a complete overhaul that changes the building’s purpose.  In many cases, this can be accomplished with little if any additional expense from property owners by utilizing grants and subsidies.  Our experienced team of construction and real estate consultants can help ensure that you get the highest possible return from your assets by providing you with thorough best-use analyses on existing land and buildings.

 
 

BENEFITS OF ASSET REPOSITIONING

  • Improving Building Performance And Energy Efficiency:  A property that goes through repositioning will reap much of the energy efficiency benefits that newly constructed buildings have.  Implementation by you as the property owner can simultaneously reduce consumption, increase profits and making the property more enticing to potential occupants. Furthermore, installing energy-efficient solutions qualifies building owners for subsidies, grants and tax deductions as high as $1.80 per square foot.

  • Identify Repurpose Opportunities: Our advisory team can help you find opportunities beyond simply improving the building. Markets change over time – since the day you acquired the property, the surrounding area may have changed dramatically. Our team will provide a full analysis identifying the most beneficial usage of your property that will maximize profit and value.

  • Improved Building Aesthetics: By owning a Real Estate Asset that is designed to become an income producing property, it always pays to make it look as good and as modern as feasible.  Asset repositioning goes beyond getting new paint, flooring and fixtures. Investing in common areas, site design improvements, and a well-designed façade improvement can make all the difference if your goal is to attract new tenants or retain current ones. 

FINANCIAL INCENTIVES OF ASSET REPOSITIONING

  • Subsidies and Grants:  Property owners can receive financial incentives and tax deductions from the Board of Public Utilities and Government agencies for the installation of Energy Efficiency Solutions. Taking steps to transform an old building with high consumption and a reliance on fossil fuels into a green building that adheres to sustainable practices will provide a considerable return on investment.  Our team will work with you to identify specific programs that will provide financial incentives for property owners that provide a Green Environment.

  • Cost Effectiveness: The key benefit of doing a repositioning focused remodel are two-fold: compared to new construction the project costs significantly less than pure replacement costs, and second, the timeline to remodel the properties and re-lease the spaces are relatively short. Repositioning your existing real estate assets can achieve higher rates of return than ground-up real estate development.

  • Higher Capitalization Rate: Typically the capitalization rates (cap rates) will be reduced through Asset Repositioning thereby enhancing the rate of return.  As a result, “value add” properties tend to be a highly positive real estate investment.

 
 
 
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