One Southwest Crossing The Challenge Colliers and Welsh took on a receivership assignment for One Southwest Crossing, a distressed Class A multi tenant office building comprised of 239,119-square-feet on eight acres in Eden Prairie, Minnesota. Although the building was fully leased, the current owner, a TIC entity with 36 owners, was not servicing their debt. CIGNA Behavioral Health, Inc., the largest tenant in the building occupying 75% of the space, had a lease expiring at the end of 2012. The building’s loan was coming due and the Welsh and Colliers team needed to move quickly with a strategy and solution. The team was further challenged with incomplete files and minimal paperwork from the prior management company. Strategy Transform the property with successful asset and property management in the form of debt restructuring, expense reduction and lease negotiations. Stabilize the asset and add long-term value for both the owners and tenants. Services The team studied the asset operationally, pieced together the history and challenges, and jumped in to implement cost-saving solutions. Recognizing that tenant, CIGNA, was the key to stabilizing the value of the building, the team worked diligently to improve the asset’s appeal and to secure a renewal. The loan-to-value ratio on the property was upside down, however, Welsh Capital successfully negotiated a loan extension for the property. Welsh Construction and Genesis Architecture were tapped to design and build a $3 million parking facility to improve the building’s functionality and to meet the needs of the increasing density of CIGNA employees. The Results CIGNA signed a long-term lease to renew their existing 177,058-square-foot space and to expand into a total of 211,105 square feet. The Building Owners and Managers Association (BOMA) of Greater Minneapolis awarded Colliers and Welsh with the Outstanding Building of the Year (TOBY) Award for the management of One Southwest Crossing. Every division of Welsh and Colliers was involved in this project. Our vertically integrated platform and ability to collaborate with all team members under one roof contributed to the success in restoring the value of this prominent asset. The Building Owners and Managers Association (BOMA) awarded Colliers and Welsh with the Outstanding Building of the Year (TOBY) Award.