What is Owner Services?
Owner Services is a unique service where we help businesses transition from renting → owning.
There are many businesses out there who would like their own space but are overwhelmed by the thought of having to buy (or build) a building, secure financing, find a general contractor, make renovations, put management in place…the list goes on and on.
At RDW Companies we take the pain out of this process.
What’s unique about our approach is that we handle the entire process from start to finish (literally everything)…
There are many businesses out there who would like their own space but are overwhelmed by the thought of having to buy (or build) a building, secure financing, find a general contractor, make renovations, put management in place…the list goes on and on.
At RDW Companies we take the pain out of this process.
What’s unique about our approach is that we handle the entire process from start to finish (literally everything)…
What's the value?
Moving from renting to owning offers three significant wealth builders for your company.
1. Reducing Occupancy Costs
Surprisingly, owning your own building can actually reduce occupancy costs for your company. You are better able to control costs and stay ahead of the market.
|
2. Accumulating Principal
By paying the rent each month, your operating company will pay down the debt which increases your equity, creating long term wealth.
|
3. Real Estate Appreciation
Income producing commercial real estate is inherently built to appreciate over time and is a sought after hedge against inflation.
|
In addition, a company can also choose to purchase a larger building and lease out any unused space. This essentially serves as a wealth “booster” that speeds up the process and increases cashflow substantially. If you decide to go this route, we can handle the leasing management for you based on our 30 years of experience.
Case Study: BIS Benefits, Inc.
BIS Benefits, Inc. is a leading insurance and benefits agency located in Roswell, GA. They have won numerous awards, including consistently ranking as one of Atlanta's healthiest employers. In 2016, they took home top prize as Atlanta’s Healthiest Employer for the Small Business category awarded by the Atlanta Business Chronicle.
Here's how we helped them purchase, renovate, and occupy their 14,000 sf office building located in Roswell.
In 2018, BIS was nearing the end of a 10 year lease in their building when they asked us to begin searching for their new home. We began actively looking for an under-utilized building in an attractive area that would be centrally located for their business. In addition to this, the owner was open to the idea of buying a larger building that the company could grow into over time, and leasing out any extra space in the interim to create an additional income stream.
|
After working with BIS to narrow down a target radius we came across a "broken" building that was in need of renovation but showed tremendous potential. The best part about this building is that BIS was able to fit their entire operation on the top floor, which created the opportunity to lease out the lower level and create additional cash flow.
We ended up purchasing the building at a 21% discount from the asking price
|
We worked with an exceptional local lender who was excited to take on the project. By taking a professional real estate approach and using our underwriting and projections, the lender said it was once of the smoothest deals they’ve ever worked on. We were able to be an advocate for the owner throughout the entire lending process
The building was purchased using a 15% cash down payment which included the cost of purchase, renovations, leasing, and our fee.
|
After closing on the building we immediately began making interior and exterior renovations. BIS moved into their newly renovated space upon completion. Once BIS occupied the building, we began renovating the lower level spec suites to get them leased to new tenants. We hired a local office broker to market the spaces for lease while the renovations were underway. Upon completion of the renovations, we were able to secure a tenant to take the entire vacant space.
What was the new value of the property after renovations? About 2X the initial purchase price.
|
+ CASH FLOW: After completing renovations, BIS occupies the top floor and the bottom space is fully leased and rental income + principal paydown is happening every month.
+ REDUCED OCCUPANCY COSTS: BIS Benefits will save 25% in occupancy costs over the next 10 years vs. a traditional lease at market rates.
+ NET WORTH MULTIPLIER: Will have a 3X net worth increase (314%) over cash investment during a 10 year hold after expenses (includes cash flow, appreciation, principal paydown).
+ PEACE OF MIND: The best part about this deal is that the cost of the mortgage on the building is equal to the monthly rent payment in their previously leased space, but they now have DOUBLE the square footage. This means even if the lower level space was never leased they are still easily able to make the mortgage payment and build equity through principal paydown.
+ PROJECT IRR: 18%+
|
|
BEFORE |
|
|
AFTER |
|