The Situation
The client purchased a prominent medical office building located in the heart of downtown, directly across from City Hall and considered one of the most recognizable buildings in the community. Shortly after closing, the property’s primary tenant provided notice that they would be vacating the space within six months. This occurred in April 2020, during a period of significant market uncertainty. Although the tenant was contractually obligated to continue paying rent for another year, the client faced a major decision regarding the future use of the building and the risk of long-term vacancy.
The Approach
Seeking objective guidance, the client engaged the Maven team to evaluate the highest and best use of the property. As part of the asset management mandate,the Maven team worked closely with municipal planners and council members to better understand the town’s long-term vision for its downtown core. Given the property’s central location and visibility, municipal feedback emphasized the need for more street-level retail to support downtown activity, along with additional residential rental units to meet local demand.
The Strategy
Based on this feedback, the Maven team coordinated the engagement of a local architect to design a conversion of the building from a medical office into a mixed-use asset. A detailed feasibility study was completed to evaluate construction costs, projected rental income, and expected absorption timelines. The Maven team clearly outlined how the required investment could be supported by future income, while also positioning the property to achieve a higher sale price should the client choose to sell in the future.
The Execution and Results
The client approved the proposed plans, and the Maven team oversaw the construction management process, including retaining and coordinating construction crews to ensure the project remained on schedule. At the same time, Maven’s marketing team prepared a full leasing strategy while construction was still underway. This proactive approach allowed leasing efforts to begin early, with the first tenant filling the first vacancy after just eight months
. Within thirteen months of Maven’s Asset Management services being engaged, all ten residential units and retail spaces were fully leased. As a result of disciplined planning and decisive execution, the client achieved a handsome return on invested capital and significantly increased the long-term value and stability of the asset.
What began as a challenging situation during an uncertain time ultimately became a successful transformation. Through clear strategy, strong municipal relationships, and hands-on asset management, the Maven helped turn a potential liability into a thriving downtown investment.
