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Vacated corporate HQ building in Pomona, CA

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Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
I'm appraising the 23 year-old former HQ building for Rockwell, about 250,000 sf. I'm not sure if there is an active market from prospective single tenant users. Does anyone have a ball-park estimate of how much it typically costs to convert HQ buildings to multi-tenant use? They do have one church in there (not a good sign) for 17,000 square feet.

Thanks, anyone.
 

CBBoston

Member
Joined
Jan 27, 2008
Professional Status
General Public
State
Massachusetts
The cost to convert would depend on several things. First what size and demensions are the floor plates? That in of itself may limit the ability to use the space as multitenant without doing major major renovations. Second are there any super adequacies that are a hinderence to conversion or creat negative value to new tenants? They may have to be demoed. Also additional hallways and common areas may need to be added reducing the net rentable. Of course in some markets common areas are added to the tenants sf. Undoubtedly a new single user or multitenants wouldn't like the existing floor plan. Demo everything under the ceiling. Oh and relocate much the lighting, electrical and HVAC vents. It probably is almost the same cost for building out a shell building plus demo costs. The church -- if a developer buys the property he should probably leave because he might need a place to pray.
 

Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
Just got back from seeing the building. Not a corporate HQ building at all (unlike as described by the mortgage broker), but a cheaply built "back office" type facility with large floorplates that would be difficult to carve up. Suitable for large space users with little respect for their employees, i.e. call centers, government agencies, payment processors, etc.. These types of buildings always seem harder to sell or lease than multi-tenant buildings.
 

CBBoston

Member
Joined
Jan 27, 2008
Professional Status
General Public
State
Massachusetts
Is this for a refi or new financing?
 

Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
Refi, of course. The building is 100% vacant after 30 months of leasing efforts. Interestingly enough, I submitted the appraisal report yesterday and have awakened to an inbox full of rebuttals and the discovery that CBRE was also hired and came up with a similar estimate of value.
 

larry b

Freshman Member
Joined
Sep 18, 2007
Professional Status
Certified General Appraiser
State
Nevada
6/18 am--initial post, hadn't seen property, anticipated HQ type. 6/18 pm--inspected property, different use. 6/20 am--stated that report was delivered yesterday..etc. WOW!!!!
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
6/18 am--initial post, hadn't seen property, anticipated HQ type. 6/18 pm--inspected property, different use. 6/20 am--stated that report was delivered yesterday..etc. WOW!!!!
Really - with the technology and data available today, I'm surprised it took that long. He probably took 6/19 off.
 

Dennis J. Black ASA IFAS

Senior Member
Joined
Mar 5, 2002
Professional Status
Certified General Appraiser
State
Florida
Please tell me that there was more than 48 hours from inspection to report on some thing of this magnatude.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
Please tell me that there was more than 48 hours from inspection to report on some thing of this magnatude.
Depending on the information that was provided at the time of engagement, as well as the amount of data available to the appraiser in his files or databases, 48 hours may be a perfectly reasonable amount of time to complete the report.

Don't jump to conclusions based on postings on this board ...
 
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