Netcenter, 558,000 SF Converted Mall Hampton, VA

Netcenter, a 558, 000 RSF mall converted to office use, was 69% occupied with tenants who were credit-worthy but near the end of their lease terms. It was suffering from chronic above- and below-ground leak problems. The mortgagee foreclosed and turned to AthenianRazak for help. We worked to maximize value on two simultaneous tracks, first inexpensively designing a plan to improve the exterior and entry sequence to make the property attractive to new tenants. This plan successfully landed Netcenter on the short list for a 95,000 sf tenant prospect. At the same time, AthenianRazak worked on renewing and expanding existing tenants, analyzing and solving systemic leak issues, and improving maintenance and responsiveness.

AthenianRazak successfully renewed and extended terms for the existing tenants. We also renewed and significantly expanded one large tenant, who was about to sign elsewhere, by providing stepped-up service. Delay in executing the renewal threatened to postpone completion of the expansion needed by the tenant to meet contractual obligations; we solved the problem by breaking the project into phases and using a GMP contract, getting the needed seats in place timely while limiting cost risk. The project came in almost 40% under its initial budget.

With the tenants stabilized, control of the property was transferred. The head of the expanded tenant remarked of our Project Manager Janet Grace: “I wish you were on every project we had.”

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