Situation

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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.     

 

 

Challenges

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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. 

 

 

Results

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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.