Vanquish

Real Estate Asset Repositioning is the strategic use of renovations and capital improvements on properties in order to change their place in the marketplace. This can range from renovations that upgrade a building to be more in line with modern buildings, to a complete overhaul that changes the building’s purpose. At Vanquish Real Estate, we provide this type of real estate development consulting across the nation. Our experienced team of construction and real estate consultants can help ensure you get the highest possible return from your assets by providing you with thorough best-use analyses on existing land and buildings.

When it comes to the benefits of asset repositioning, your real estate advisory team can help you find opportunities beyond simply improving the building. Markets change over time – since the day the property was built, the surrounding area may have changed dramatically.

Your advisory team can help you explore creative ways your property could be transformed to serve a new purpose and a new real estate market segment. A warehouse can become a trendy disco or brewery. A historic factory building could be re-envisioned as a unique and creative office space. A big-box retail store and its parking lot could be transformed into mixed-use apartments with food and entertainment space. In fact, some regional shopping centers in California are already in the process of repositioning themselves.

The reasons mentioned above all contribute to improving your real estate asset’s performance. The key benefit of doing a repositioning focused remodel are two-fold: compared to new construction the project costs significantly less than pure replacement costs, and second, the timeline to remodel the properties and re-lease the spaces are relatively short. Repositioning your existing real estate assets can achieve higher rates of return than ground-up real estate development.

Also, typically the capitalization rates (cap rates) will be reduced thereby enhancing the rate of return. As a result, “value add” properties tend to be a highly positive real estate investment.