The Situation
The brief.
A family owner of a single-asset industrial property was facing a $1.4M TI/capex cycle on a 2-tenant building. Two key leases were rolling within 18 months.
The disposition window appeared soft but the cash-flow projection through the TI cycle was uncertain. The family wanted a decision document the next generation could reference.
The Work
What we shipped.
- Modeled the hold scenario through the TI cycle with three lease-renewal probabilities.
- Modeled the sell scenario at three exit cap rates and three buyer-type assumptions.
- Wrote a decision memo with explicit assumptions, sensitivities, and risk framing.
- Walked the owner through both paths in a 90-minute working session.
The Outcome
The result.
The family elected to sell at a soft-market discount. The decision memo became the reference document for the family's next two property dispositions.