Approach is Everything – Warner Commercial Moves Portfolio
Who do you go to, when you're ready to divest your real estate interests?
Clearly, to a trusted and measured partner who is willing to work with you, as an owner, to achieve the best outcome while accomplishing your goals.
Steve Smith Properties did just this about three years ago, when owner, Steven Lucido, approached Jonathan Warner at Warner Commercial. Lucido was no longer living in the Frederick area and was ready to streamline his commercial investments in Historic Downtown Frederick, Maryland. His goal: to divest 5 of his 6 properties, all along the Market Street corridor.
Despite COVID and the uncertainty that it caused in the market, Warner Commercial was ecstatic when the last deal sold in 2021, with total sales in excess of $4 million. On top of that, three of the properties sold at more than 20% above their appraised value.
"As a 30 year real estate investor and developer in the Historic District of Downtown Frederick, Jonathan and my paths crossed many times," relates Steve. "As staunch advocates for the betterment of Downtown, we served side-by-side on numerous committees created to enhance the "jewel" we saw Downtown Frederick to be. No one committed more time and energy to this effort than Jonathan, so naturally when it came time for me to retire, Warner Commercial was my Broker of choice for the sale of my portfolio."
“I knew Steve from back in the 1980s when he purchased and renovated each of these properties,” explains Jonathan of the long-term relationship. “He was investing heavily in downtown for the long term, something we were doing right alongside him with our client base.”
The issue in 2019 though, was to present the listings in a manner to achieve the highest and best value for each building. "This could easily have been perceived as liquidation and we knew that a measured approach was of paramount importance to achieving the highest returns for our client," explains Jonathan.
Warner Commercial starts by consulting with the owner to put the property in its best light before alerting potential purchasers to the opportunity and first and foremost, making recommendations regarding improvements. "It's imperative that clients understand that they need to invest in their properties to protect and maintain their investment," explains Warner.
Everything from paint, clean up, new exterior stairs and lighting to upgrading apartments, improving access, removing asbestos, servicing HVAC systems and refreshing common areas was recommended by Warner Commercial. “Our client understood the value of these improvements and moved forward with them,” says Warner.
We worked with an appraiser to understand the base worth of the property and took that into consideration with current rents and developed a plan to improve the buildings operating numbers. We began by renewing existing leases with current tenants, filling vacancies and renegotiating.
Next Warner Commercial procured existing floor plans and created marketing drawings so that prospective purchasers could best understand each property. We tackled each building individually and made recommendations about which properties to offer for sale and in which order.
A key to our marketing strategy, we produced an extensive body of photography. This was especially important as the COVID pandemic took hold. We began marketing the properties before much of the world shut down and after three years, and even selling two buildings during the pandemic, the last property settled in May of 2021.
All five properties sold for nearly 16% above their appraisals in a very difficult time for commercial real estate.
"Over the course of a year and a half, Jonathan and Warner Commercial went above and beyond in their representation of my properties and proved their worth as experts in valuation, preparation and leasing of my buildings in advance of their sale," explains Lucido.
"In reflection, Jonathan's advice, work ethic and efforts on my behalf proved invaluable towards achieving my goals, and I will always be grateful for having this last opportunity to work with him. He is the consummate Real Estate Partner, and I am proud to count him as a friend," concludes Lucido.
And that's our goal. A win-win for owners and investors alike. Click to learn more about the story and these properties.
Work with Warner Commercial and let us redefine your commercial real estate experience. We look forward to assisting you with your commercial real estate goals. Give us a call today at 301-663-0202.
Have a property to sell or lease? Or looking to make a move or grow your business? Check out the listings on our website where you'll always find photos, floor plans and pricing.
Common Market Moves into Second Location
Warner Commercial is pleased to be a partner of Common Market and congratulates them on the grand opening of their second location in the former 7th Street Safeway in Frederick, Maryland. This second locations the culmination of a long relationship and a great deal of commitment from a business that got its start more than 40 years ago.
Carroll Creek Business Park – A Case Study in Transformational Redevelopment
From historic properties to prominent storefronts, our goal is to help property and business owners join in the growth of Frederick as spaces transition in ownership and function.
The Carroll Creek Business Park is an example of that.
When the longtime-manufacturing site became vacant next to McCutcheon’s, a new vision was needed in order to capitalize on the property’s value and location adjacent to the Carroll Creek Linear Park. That’s where Warner Commercial came in.
Click below to read the full story:
Derelict Manufacturing Conversion to Unique Class A Architects Office Suite
After two decades on the corner of Market and Church streets, Proffitt and Associates Architects needed to expand, but demanded an alternative in the downtown and Warner Commercial connected their office needs with the developers of 49 South Carroll Street.
Negotiating for a long term tenant and extensive rehabilitation, Warner Commercial developed a win-win strategy.
In June 2016, the architectural firm opened their doors after Warner Commercial’s oversight and assistance in almost all facets of the deal, from financing, budgeting, permitting, and construction management to sign installation.
Francis Scott Key Hotel: Conversion from Nursing Home to Mixed Use Commercial and Luxury Apartments
When Struever Brothers Eccles and Rouse (SBER) was looking for assistance in the redevelopment of this historic building, they turned to Warner Commercial. From meeting with City politicians to building permit issues, Warner Commercial was a key team member. In addition, Warner Commercial has handled all the commercial leasing for more than a decade and over time has assisted the commercial tenants with the necessary steps to having their doors open and ready for business.
100 North Court Street Conversion from Residential Apartments to Commercial Office Space
Acting as the consultant for this historic property, Warner Commercial marketed and coordinated permitting for the building’s owner, oversaw the redevelopment process, sold the property to its new owners and has been leasing the property for more than a decade.