Case Study: a religious non-profit organization creates value from an obsolete school building with Lee & Associates

a religious non-profit organization secures a 10-year, 16,125 RSF lease with Lee & Associates

Lee & Associates was engaged by a religious non-profit organization in the San Francisco Bay Area that owned a functionally obsolete school building. The non-profit was in bankruptcy and relied on income from the property but had no capital for improvements or to offer tenant allowances. The vacant building had become a neighborhood blight, and while there was interest from school users, the high modernization costs were a major barrier without ownership certainty.

Lee & Associates implemented a creative lease solution for the owner. They first had the building remeasured to BOMA standards, uncovering additional rentable square footage to increase income. They then structured a lease with a tenant that included a fixed-price purchase option and rights of first offer, allowing the tenant to invest in modernization with a path to ownership. This strategy provided the non-profit with immediate above-market rental income, enabling it to continue operations, while the tenant secured a long-term home and the neighborhood was revitalized.