Ancora and FSM in Beachwood, Ohio
Two investment firms, Ancora Advisors and FSM Capital Management, LLC, jointly hired Weber Wood Medinger to help identify relocation options for their joint headquarter offices. A primary goal for the relocation was the acquisition of a new building. Ownership of the building was to be shared amongst the partners, with Ancora and FSM individually requiring 20,000 square feet and 7,500 square feet of space, respectively.
Both firms desired to relocate into a building that was near their former east side location in Beachwood, Ohio, a market that is extremely competitive for prime real estate.
Various relocation options were evaluated and earnest negotiations by WWM began for the redevelopment of an older industrial building into a state-of-the-art office facility for the two tenants. Three weeks before the close of said redevelopment, WWM identified and presented a more opportunistic investment in a 65,000 square foot building in Mayfield Heights, Ohio.
With the current owner only using 30,000 square feet of space, WWM was able to negotiate a complex three way deal in which the ownership of the building was secured at a competitive discount. The current owner remained as a third party tenant to create additional revenue, while Ancora & FSM respectively occupied the balance of the space.