Background

 

Fisher & Porter was an old line Pennsylvania industrial firm manufacturing flow control metering devices and valves. It maintained a number of manufacturing facilities and a corporate headquarters at 200 Witmer Road, Horsham, PA. F&P wanted to conserve funds by moving its executive offices to one of its manufacturing facilities and to dispose of its headquarters building. The market for the sale of its headquarters building was depressed, however, and the building needed substantial repairs, including a new roof.

 

Property Management and Leasing

 

REIS entered into an arrangement with F&P whereby we would rehabilitate the building, manage it and convert it to a multi-tenant office building, thereby creating value. In return, we would have the option to purchase the building at a future date at a fixed price that was in excess of the then market value. We partnered with F&P, sharing in the increase in value that we would create.

 

Restructuring the Property, Asset and Property Management

 

REIS analyzed the market and developed a strategy to reposition the building. We then made the substantial improvements needed, including the new roof, parking lot resurfacing, extensive common area improvements and a new elevator serving the second floor. At the same time, we began managing the building and a leasing effort to fill the building with quality tenants.

 

Premature Sale

 

After the improvements were completed and the leasing program was well underway, F&P advised that they needed the proceeds from the sale in that calendar year instead of waiting until our option matured. Although we had the right to delay the sale, we considered F&P our partner and undertook to sell the building immediately. The overall market was still depressed, but we located another industrial company in search of a new headquarters for one of its divisions. Although they were considering a build-to-suit and refused to entertain any other alternatives, we convinced them that the economics of purchasing 200 Witmer far exceeded the benefits of a new building, and the sale was concluded within the time frame requested by F&P.