Leibsohn convinced an investor looking for a 1031 Exchange property to purchase the Wallingford Plaza, a 29,000 square foot office/retail building, and retain Leibsohn as property managers. The property is well located on the corner of 45th Street and Stone Way. Wallingford was becoming a stronger neighborhood retail market, without much vacancy, and the development of high priced office properties was just starting to occur down the hill on Lake Union. A study of the market showed that the rental rates at the property were slightly under the then market. It was also anticipated that rates in the market would be raising in the next couple years.

The investor purchased the building for $3,225,000 which was based on a 9.8% cap rate on the then NOI. During the next several years, Leibsohn worked with the existing tenants to provide opportunities for some to expand and others to downsize to meet the different needs of their businesses. In doing so, the stronger more stable major office tenent was able to lease more square footage, and the amount of riskier retail/restaurant space was decreased. This provides the ownership with a more stable occupancy and cash flow. All the leases have now been renewed at the increased market rates. Also, due to the strategic location, Leibsohn was able to lease out roof space to a wireless communication company.

During the past three years, the building value was increased from $3,225,000 to $4,476,000. This is more than double the investors original equity. This has created an internal rate of retun (IRR) of 28.32%.