We purchased the 48,000 sf well-maintained multi-tenant office property from an overseas family trust. The acquisition price was $4.0M. The property was saddled with an assumable high interest rate loan and historical vacancy levels hovering around 40%.
During the 26 month hold period, occupancy was brought to 100%, with two of the largest existing tenants extending their leases an additional 10 years. The property was sold for $7.0M, structuring the timing of sale to coincide with the expiration of the defeasance penalty of the current loan payoff. Return on investor equity exceeded 39% on an annualized basis.