McCanna Hubbell

The Challenge
The McCanna Hubbell building is a national historic building located on Central Avenue in Downtown Albuquerque and had been purchased by a six person partnership in 1993. A principal of REA had represented the partnership in the acquisition of the building from the Resolution Trust Corporation. Upon acquisition the Partnership initiated a marketing plan through the REA Principal that brought the building to a 100% leased status within six months.

Over the next decade, the property outperformed the market and the partners' returns exceeded their expectations. As the leases matured over the last few years, almost half of the Tenants moved out of the building for various reasons. Because the partners had entered into different stages of their careers, there was disagreement as to what the partners were willing to reinvest, in terms of the capital and time required to reposition the property as a performing asset.

The Solution
The original partnership contracted with REA to develop a strategic marketing plan to reposition the property to maximize its investment. REA determined that it would require a capital infusion equal to almost half of the original purchase price to reposition the property to meet the partners' investment criteria. However, in analyzing the market, REA determined that due to a very active investment market for this type of property, and after analyzing the partnership's investment criteria, the partnership would be better served to sell the property.

The McCanna Hubbell partnership enlisted the services of REA to dispose of the asset. Within four (4) months of signing the listing agreement, the building was sold at a price that provided the partners with a 100% return of their original investment and a 400% return on their original cash investment.


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