CASE STUDY - LEASE MONETIZATION

4220 VON KARMAN

NEWPORT BEACH, CA

SUMMARY

The success of commercial real estate investing and development is predicated on the cash flow that an asset can generate.  In commercial real estate, every tenant within any building contributes to the overall performance the asset.  Without leases in place, there is no cash flow.  Without cash flow, the traditional model of selling a leased investment at a rate of capitalization doesn’t exist.

Redwood West’s takes an “outside the box” approach as part of its tenant representation platform and provides each of its customers the opportunity to invest and capitalize on account of its lease. We create partnerships with our customers by acquiring real estate and monetizing leasehold positions in the form of equity whereby Redwood West customers can also be rewarded by virtue of their lease.

SITUATION

Redwood West identified a prominent 27,507 SF office building in the heart of Newport Beach that met the required parameters for its customer.

ACTION

Brought in a strong capital partner that was already heavily invested in Newport Beach to close on the property and negotiated a favorable lease and equity position for it’s customer.

RESULTS

Within one year of ownership, Redwood West leased the balance of the property, creating long term stable cash flow for all investors.