Sunrise Square Beltline Office Building
Riverpark took over the property management of Sunrise Square, including building maintenance, operations and financial planning in September 2010. The four story, 60,000 square foot Beltline office building which was constructed in 1979, required revitalization including significant deferred maintenance and replacement of major mechanical equipment that was well past its operating life cycle. These issues had culminated in poor reliability of major building systems and aging aesthetics, causing general tenant dissatisfaction and unnecessary turnover and vacancy.
Upon assuming responsibility for the management of Sunrise Square, we completed an assessment of the physical plant and spent time getting to know the tenants and understanding their concerns. We worked with our client to scope out the necessary physical and mechanical changes, obtained competitive quotes and budgeted for the improvements. We then developed a long term financial plan for the property. Once sanctioned by the owner, Riverpark implemented a phased approached to upgrade and maintain the property to the benefit of both client and their tenants.
In the past four years, our work on the building has consisted of:
- Replacing the boilers and rooftop air handling units, including digital control systems
- Replacing the main fire alarm/sprinkler and lobby enunciator panels
- Renovating the main and lower lobbies, elevator interiors and all hallways
- Replacement of the exterior entranceways including the addition of handicapped accessibility
- Initiating a digital card key access control system to replace a key lock and combination lock based security system that left the building vulnerable to intrusion
- Implementing a major spray foam insulation program throughout the exterior wall systems to enhance tenant comfort and greatly improve energy efficiency
- Instituting LED lighting throughout the stairwells and exterior of the building
- Significantly improving the landscaping, including removal of visual barriers to help prevent criminal activity from taking place at the property
- Introducing security cameras at strategic locations throughout, better signage for all stairwells, utility and storage areas
- Implementing a fire safety plan for the building for tenant safety including annual fire drills
- Initiating a recycling program for waste paper to reduce garbage and improve environmental stewardship
- Replacing several sump pumps and properly sealing sumps to eliminate problematic sewer gas odours
- Hiring a dedicated building operator to ensure the best possible tenant service
Since 2010, we have renewed and/or negotiated 22 new leases. The building has seen an increase in net operating income of 33% and the tenancies are very stable. While most of these expenses are being recovered from the tenants over time, we have successfully maintained our operating costs at the low to mid-range of competing Beltline office buildings.
17th Avenue Village
Since taking over responsibility for management of 17th Avenue Village in 2009, we have negotiated three significant new national tenant leases representing over 54% of the total rentable area, and increased Net Operating Income by 91%. Through this period, Riverpark managed two major development projects on the property, significant tenant renovations, lease termination negotiations, new leasing and re-financings and in doing so created a tremendous increase in revenue, cash flow and overall asset value.
By actively polling the marketplace, we were able to determine that TD Bank was interested in a location in the vicinity. We negotiated a buy-out for an existing tenant in a 3200 square foot freestanding building, subject to obtaining a lease deal with TD Bank and obtaining development approval to construct a larger 4800 square foot building in its place.
Working with an architect and using market knowledge and commercial construction contacts, we were able to scope out the cost of the project, determine the timeframe and ultimately to obtain a development permit to proceed with the project. We wrote the tender documents, managed the tender process, engaged the general contractor and coordinated the construction processes as well as the transitional phase of development, including tenant fit-out and building system start-up.
With the construction of Calgary’s C-Train line, the nearby Shoppers Drug Mart required a new home. We negotiated the buy-out of a current tenant for over 23,000 square feet and a new long-term lease agreement with Shopper’s Drug Mart including a substantial investment by the tenant to the interior and exterior of the space including all new electrical and mechanical infrastructure and an increase in cash flow to the owner. By working closely with the various contractors involved in the development process, we were able to ensure that disruptions to the shopping centre and the other tenants were managed and kept to a minimum.