The Bonn Building Achieves Success with Chano Real Estate Partners
"We have seen a very postive impact from the services CHANO provides to our clients. As a financial advisor to many business owners, we have seen this impact in a relatively short period of time." Hannah Thieneman, CFP, Valeo Financial Advisors, LLC
CHALLENGE
The Bonn Building is a multi-tenant mixed-use office/retail property located in Fishers, Indiana, at the corner of Saxony Boulevard and 131st Street. Despite the superb location, the deteriorating condition and lack of capital from the previous owner had resulted in occupancy falling from 95% to 53%.
The property was acquired in Feb 2021 by CF Bonn, LLC.
CHANO Real Estate Partners was appointed property manager of the Bonn Building in Jan 2022 and tasked with managing the property and working with the leasing agent to fill vacancies and renew existing MTM tenants, compromising 34% of the building's residences.
STRATEGY
During the first four months of this assignment, CHANO implemented a comprehensive tenant program to increase services for the building's tenants, developing a bidding process for standard service contracts to lower operating expenses, and reviewing each financial category to determine which expenses were out-of-line.
Finally, since there were several leases on MTM, CHANO contacted those tenants to re-establish a relationship with them in the hopes of gaining their confidence and renewing their leases.
RESULTS
The Bonn Building expenses were reduced by more than 15% and occupancy increased by 47%.
The MTM tenants were brought on term and occupancy was increased to 94%, improving
the Net Operating income by 15%.
A review of the building's insurance program resulted in a 63% savings in the annual premium and reduced the deductible from $50,000 to $5,000.
With these savings, The Bonn Building was able to address deferred maintenance issues, including hardscapes and landscaping that were detracting from the property's appearance.
