56% More Revenue. A New Purpose for an Aging Property.
The Client Our client is a 76-year-old property owner who primarily resides in the United States due to ongoing health-related needs and access to healthcare. He owns a large G+3 residential mansion in Addis Ababa, originally built in an area that was predominantly residential. Over time, however, the neighborhood changed dramatically. Businesses, bars, and other commercial establishments began opening around the property, transforming the character of the area and creating significant noise, particularly at night. The owner's daughter, who also lives in the United States with her family, reached out to TATARI to find a solution. The family needed someone they could trust to take professional responsibility for the property and find a better use for the asset while improving its financial performance.
The Challenge
The property had been built for residential use, but the neighborhood around it had changed. The increasing commercial activity and nighttime noise made the property less attractive to residential tenants. Existing and prospective tenants were becoming uncomfortable with the environment, making it increasingly difficult to maintain the property as a conventional residential rental. For an owner living abroad and dealing with health-related limitations, managing this situation personally was not practical. The question was no longer simply “How do we find another tenant?” It was: “How do we adapt the property to the reality of its new environment and unlock its potential?”
What TATARI did
TATARI reassessed the property in light of the rapid transformation of its surrounding neighborhood. Rather than continuing to position the G+3 mansion as a residential rental in an increasingly commercial and noisy area, we identified an opportunity to adapt the property's use to better suit its new environment. We repositioned the property for commercial use and secured a pediatric clinic as a long-term tenant, creating a more stable and predictable cash flow. We also coordinated the tenant's proposed interior renovations and exterior improvements, reviewed the designs and scope of work, and presented them to the owner for approval before any changes were made. Once approved, TATARI remained involved throughout the renovation process, monitoring the work to ensure the agreed changes were properly executed and aligned with the approved plans. We also established clear expectations around the property's condition and how the improvements would be handled at the end of the tenancy, protecting the owner's interests while allowing the tenant to adapt the property to its needs. The result was a 56% increase in property revenue, a longer-term tenant, and a property that was repositioned to perform better within its changing environment.
Reassessed the property
We assessed the property's current position, including its location, physical characteristics, surrounding environment, existing use, and rental potential. We recognized that continuing to position the property purely as a residential rental was becoming increasingly difficult given the transformation of the surrounding neighborhood. Rather than fighting the market, we looked for an opportunity to work with the market.
Identified a better use
We explored alternative uses that could be better suited to the property's new surroundings while remaining compatible with the building itself. Given the property's size, configuration, accessibility, and location, we identified medical and healthcare services as a strong potential use. A pediatric clinic presented an opportunity to provide the property with a stable, professional tenant whose operations were more compatible with the increasingly commercial character of the area.
Secured a new tenant
TATARI managed the process of repositioning the property and securing a pediatric clinic as the new tenant. Rather than accepting short-term or uncertain rental arrangements, we focused on finding a suitable tenant capable of providing the owner with a more predictable and sustainable income stream. We negotiated and secured a longer-term agreement with an arrangement that can account for inflation during the lifecycle of the agreemnt, giving the owner greater stability and reducing the uncertainty associated with frequent tenant turnover.
Improved the financial performance
The change in use and rental strategy significantly improved the property's financial performance. Revenue Increased by 56% from the get go By identifying a tenant and use that better matched the property's changing environment, TATARI was able to substantially increase the income generated by the asset. The property went from being a difficult residential rental in a changing neighborhood to a professionally occupied commercial asset generating stable rental income.
Created a stable cashflow
The longer-term clinic agreement provided the owner with greater predictability than the previous residential rental model. Instead of repeatedly dealing with residential tenants who were increasingly uncomfortable with the neighborhood, the property now has a tenant whose operations are better suited to the area's current character. A difficult residential property became a more stable income-producing asset.
Tenant improvements & renovation oversight
The new tenant required changes to the property to make it suitable for its operations, including interior design improvements and exterior renovations. Rather than allowing these changes to happen informally, TATARI established a structured process between the tenant and the owner. We reviewed the tenant's proposed designs, renovation plans, and scope of work and presented them to the owner for approval before any work began. This ensured that the owner remained in control of what could be changed, while giving the tenant the flexibility needed to operate effectively. Once approved, TATARI monitored the renovations on the ground, checking that the agreed work was actually carried out as approved. We also documented the agreed condition and requirements for the property's eventual handover, creating clear expectations around what would happen to the improvements at the end of the tenancy. The tenant got a property that works for their business. The owner maintained control of their asset.
Took responsibility on the ground
TATARI became the owner's local point of contact, allowing the family to remain in the United States while knowing that the property was being actively managed in Ethiopia. Our role extended beyond finding a tenant. We helped manage the transition, coordinate with the tenant, and remain involved in the ongoing relationship and administration of the property. For the owner's daughter, this meant she no longer had to worry about managing a complex property situation remotely on behalf of her father.
The TATARI difference
TATARI didn't simply find a tenant for a difficult property. We recognized that the property's environment had changed and helped the owner change the strategy with it. We identified a more suitable commercial use, secured a long-term pediatric clinic tenant, negotiated a more stable rental arrangement, and managed the relationship on the ground. We also protected the owner's control over the property by overseeing the tenant's proposed renovations, securing approval for the designs and improvements, and monitoring the work to ensure the agreed changes were properly executed. The result was a 56% increase in property revenue, a longer-term and more stable tenant, and a property better positioned for its new commercial environment, all while the owner remained in the United States. We don't just manage what you own. We look for ways to make what you own perform better.