Pallister Grove office repositioning leasing proposal

The deal

Pallister Grove seeking a 24-month exclusive from Wystan Holdings, read by the principal, the asset manager, the lender’s rep and the property manager.

What the owner needed to see

Why a building 44 percent empty kept losing tours at the lowest rent on Quillan Avenue, and how much capital would buy it back onto the sheet without pouring money into a dated building that still loses.

What we built

• A tour sheet with a broker’s pen notes that re-sorts as the owner buys
• A tick list that redraws the elevation and reprices the rent
• A test fit that counts seats from desks on the drawing
• A fee slider tied to signed feet

The seat the owner had never sat in

A leasing pitch normally opens with a logo and a market chart. This concept opens where the decision gets made. Thursday’s sheet has four buildings on it, and 400 Quillan sits last at $33.50 with a line through it. The building had been shown 31 times and three signed. The brokerage called the brokers on the other 28, and nobody had walked over rent.

You can buy first place, and we’d stop at second

Six scores out of ten decide the order, the same six a tenant’s broker uses in the cab. Lobby, terrace, systems and suites cost $21.0M, put the building second at $37.25 and earn 13.0 percent. The windows take it to first for another $12.4M, earn 8.0 percent and push rent to $39.00, a dollar over the budget on the sheet. A broker who argues against that spend has earned the right to ask for the rest.

Seats before ratios

Tour sheets get decided on headcount, and 41 tenants have leases ending by 2029. The default test fit puts a trial firm on 22,000 feet with 68 people and $819,500 of rent in year one, which is $258,500 less a year than The Ostrand. Priya Venkat draws these the night after a tour.

Four signers, one tool each

• Ruth Wystan moves the cap rate. At 7.50 percent, $36.4M of added value less $21.0M of capital nets $15.4M.
• Dev Ramanathan drags leasing late. The default shows fully leased in month 22 and $237,153 for each month of slip.
• Carla Whitlow adds future funding. At $10.0M, coverage clears 1.25 times in month 13.
• Joe Pacek picks which jobs run at night. The default takes $0.97M from a $1.26M allowance.

The lender’s rep and the property manager rarely get a leasing proposal at all, and they’re the two who can stall one.

Four initials and a Monday

There’s no retainer. At the default 128,480 feet and 2.00 percent, commission comes to $957,176 of a $1,535,523 total, and every line below it can go. Four initials start the canvass the first Monday after the last signature, with broker call notes that Friday. Four open questions sit right above the signature, from the spandrels to the lender’s credit team.

The detail that does the work

The broker’s pen note on the building changes with the ticks, from cut it to this could be the one.