Value Add Office Portfolio Investment
Co-investment with high quality REIT
Key facts:
- Location: Orlando, FL
- Year of purchase: 2004
- Five office buildings totaling 1.2 million sf
- Purchase price: $212 million ($175 psf)
- Financed 65% with favorable 10 year fixed rate
- Occupancy at acquisition: 81%
Investment Case:
- REIT had partner who wanted to sell its 60% stake in an off-market transaction
- REIT contacted EII Realty Corp. (in JVs already with this REIT) and purchased on behalf of European client
- Investment Strategy
- Invest in an emerging CBD
- EII Realty Corp. saw opportunity through five buildings of different ages, and was able upgrad common areas of older buildings to align with newer
- EII Realty Corp. was able to achieve higher rents and increase occupancy resulting in increased NOI
- Occupancy reached 94% in three years
