Private Real Estate Investor

Challenge 
A private real estate investor purchased a retail strip center and an adjacent multi-floor office building. After an initial period self-managing the investment, the investor questioned if he was managing the investments to optimize their financial performance. The investor hired Allegro to evaluate the management of the investment.

Solution
Allegro started its assessment by reviewing and abstracting all tenant leases to understand the obligations of landlord and tenant in regards to rent, reimbursement of expenses and percentage rents. The Allegro team then re-built the prior year’s financial statements to better allocate expenses and to identify opportunities for the landlord to capture uncollected reimbursements and percentage rents.

Allegro then evaluated each expenditure and identified those that were out of line with expected market costs and suggested re-evaluation and/or re-bidding contracts with service providers. The project results identified a series of opportunities to improve both the short- and long-term financial performance of the investment.