Always read the market, always position the building to reflect the current market. With WestendCarree, we were confronted with specific challenges but also with the opportunity to closely accompany the development in a strategic and multi-faceted way over 7 years. With impressive results.
Targeted doubling of value for WestendCarree in 7 years
WestendCaree FrankfurtThe property
The classic office building WestendCarree is located in the northeast of the Westend district bordering the Nordend district at the heart of the vibrant Grüneburgweg neighbourhood with its abundance of shops and excellent public transport connections. Built in 1990, the building still offers some USPs today, not least due to improvements made by successive owners. The flexible floor plan, the flexibility afforded by the four building sections and three entrances, and the excellent parking space ratio which is particularly valuable in this location can be highlighted.
Facts & figures
| Property name | WestendCaree |
|---|---|
| Address | Grüneburgweg 16-18 in 60322 Frankfurt/Main |
| Submarket | Westend |
| Asset class | Office |
| Year of construction | 1989 |
| Lettable area | 30,000 sqm |
| Landlord | Tishman Speyer; TRIUVA; InfraRed |
| Activities | Sell-side mandate, Repositioning, Landlord Representation |
| Mandate period | 2012-2015; 2015-2018; 2018-2020 |
Every important property has its story. In the case of WestendCarree, this was critical. Targeted asset management has the task of rewriting a story so that the market understands it afresh. This can only be done with credible presentation and sustainable interventions. We adopted a focused approach to our analyses and activities.
The challenge
We received our first mandate in 2012 in the form of an Asset Management/Landlord Representation mandate. After the main tenant moved out, the image of the property deteriorated due to years of vacancy of over 30% and it was considered outdated and unattractive; the rent was also considered to be too high.
The method
Active asset management with effective measures and tools
Development of a TI & CapEx plan
Development of a letting and pricing strategy
Development of a property-specific marketing suite
Marketing of vacant space
Location-specific marketing of the property
It required an extensive programme to credibly reposition the existing space in the market. For this purpose, we prepared a detailed marketing concept with the owner including a TI & CapEx plan, a letting strategy based on the possible rental scenarios (around 40 scenarios) and a credible and competitive pricing strategy.
Such steps need sufficient space for action: we worked directly from an oversized marketing suite with a lounge feel and presented the various versions of the fit-out scenarios.
In this property we put our Oceans White Rooms concept into practice for the first time: a dismantling of the previous tenant’s fit-out, where we removed all non-load-bearing walls and presented the space completely unfinished in fresh white. This enabled us to impressively convey the owner's willingness to offer the tenant a brand-new fit-out.
Our marketing was very direct: by posing the question "What can be rented and in which fit-out configurations?", we conceived all 40 vertical and horizontal rental scenarios and furnishing options. These options were attractively presented in the marketing suite, in a first for the industry.
We also emphasised the attractiveness of the location in all of our activities. Grüneburgweg is the best address in the Westend in terms of access, public transport and shopping facilities. At the same time, it takes less than 10 minutes to walk to Opernplatz. This is an outstanding location that had the stigma of being poorly situated. We changed this perception quickly and sustainably.
Space configurator
Market and location analysis
New marketing suite
Marketing brochure
White Rooms
The result
Building Value: The positive results from Asset Management, Investment Advisory and Real Estate Finance for WestendCarree
- Working with three owners in over 7 years, we have advised on five sell-side, buy-side and finance transactions with a value of around EUR 600 million
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Our Asset Management team has extended and/or concluded more than 20 lettings with over 60,000 sqm and, in the process, we have:
Reduced long-standing vacancy and stabilised the asset
Created a higher value product in the market; this was evidenced by successful sales to various investors
In brief, our work and support for WestendCarree doubled its value.