201-207 South Street
Two interconnected building in Boston’s leather district acquired by Meritage in late 2013 at 73% occupancy with below market rents. Increased building RSF through conversion of below grade space to windowed office space, repositioned through rebranding and common area upgrades, and actively leased to TAMI tenants. In just two years of ownership, executed strategy and increased NOI for an exit generating exceptionally strong returns.
One Dock Street
Class B+ transit oriented 86,400 SF brick and beam office in Stamford, CT acquired at 90% occupancy facing significant lease expirations. Property had environmental challenges that were appropriately assessed, while viewed as insurmountable by other potential buyers. Renovations to lobby and common areas and re-branding facilitated leasing of more than 52% of building above pro forma rents, bringing occupancy to 100% within 18 months. During two year hold, increased net operating income by 30%, resulting in nearly two-fold ROI.
240 West 35th Street
Acquisition of 162,500 SF NYC office building, fully leased with significantly below market rents and meaningful upcoming rollover. Immediate upgrade of lobby, common corridors and restrooms facilitated repositioning to attract upscale TAMI and fashion tenants. Despite challenges of purchase in midst of 2008 recession and bankruptcy of two major tenants in first year, property was transformed. End of fund life required sale earlier than desired, nonetheless achieved new high for psf pricing for local market and profitable exit.
1411 K Street
Acquisition of poorly managed but 100% leased building well-located in downtown Washington, D.C. with well below market rents and significant value creation opportunities. Repositioning through façade renovation and new windows, new lobby and common areas, and upgraded HVAC system facilitated building turnover to quality tenants at 25% higher market rents. In two year hold period generated strong double digit returns for investors.
Purchased 153,800 SF brick and beam office property in Boston’s Seaport in midst of 2008 financial crisis. Recognizing future value of transformation of Seaport market, invested in fitness center and aesthetic upgrades of lobby, elevators and common areas. Overcame departure of nearly 70% of tenancy due to bankruptcy and pressures on government agency occupants with attraction of TAMI tenants at higher market rents. Despite facing a series of challenges, secured successful exit earlier than desired but required for fund investors.