Realizing value in the new era of work and place
EXPERENCE
Unlocking $57M in value across a legacy office development
Leading executive leadership to next-generation investment strategy
An owner/operator with a 25+ MM square foot portfolio of office assets distributed over a variety of sunbelt markets, was realizing average performance and returns. Their goal was to unlock the Company’s intrinsic value but had been unsuccessful. Adaptiv helped to underwrite the offering and facilitate a divestiture to an offshore private equity firm achieving stakeholder objectives.
A principal of Adaptiv consulted alongside client executive team on brand positioning and growth strategy during a unique recapitalization moment for the business. Adaptiv was central to reorienting the business ahead of major fundraising efforts and developing key growth strategies for both the supply and demand segments of the client's business.
Adaptiv was selected by the WaaS operator with the largest Series A round in history and who was recognized nationally as “one to watch” by Bisnow, CBRE and Reuters, to lead the program development and management of its US expansion. The Adaptiv team led all facets of the expansion process from market analyses and comparisons, to on-the-ground surveying, to coordination with operator's design team, and designing and negotiating a combination of traditional leases, revenue shares and management agreements that best aligned with operator's financial position. The results of the work expanded their portfolio into 500k square feet across 16 new MSA's and advised on the tiered product solutions for asset owners, enterprise companies, and businesses of all sizes.
Adaptiv worked with an offshore-based WaaS operator seeking to expand its presence in North American markets. A variety of key MSAs were evaluated and underwritten, eventually baking out the deployment plan for key first, second and third phase markets, and target assets/owner relationships located in each market that would best serve their strategic objectives. The work informed expansion strategy currently underway by the client.
This profitable operator sought to divest its operations levering traditional investment banking channels. Adaptiv was able to redevelop the market positioning and narrative, bringing in new interested merger and potential buyers. This work led to a successful divestiture to an operator seeking to expand its footprint in the US. This transaction unlocked maximum value for shareholders.
Employee engagement discovery and ideation to support enterprise's transition to a distributed workforce
Realigning business goals with employee preferences to drive long-term enterprise value Adaptiv evaluated the client's physical operating footprint as well as the work patterns for five distinct types of employees. The objective was to establish a data-driven view of how the built environment aligned with actual employee-elected decisions about how, when and where they chose to produce their work. Insight into the gap between these two attributes allowed Adaptiv to re-develop an approach to "place" and strike the balance between business goals and employee preferences. Overall aims were to increase retention (by empowering employees with more choice) from a relatively average turnover per annum of about 20% and reduce it down to a target of 15% and, secondarily, reduce real estate inefficiency where possible. Adaptiv developed the model to increase alignment between these attributes that included accelerating real estate turnover cycles, creating a more distributed physical workplace footprint--including work-from-home (WFH)--and developing process around expanding the menu of 3rd place options available to touch down in. Further, we helped to source and redefine the supply relationships in place to enable the program to operationalize. Delivering against the turnover metric alone was judged to have material impact on Company NOI, and accretive to EV over time.
