Property Type: 5 Building Suburban Class B Flex Office Park

Address: : 8730 148th Ave NE, Redmond, WA
Size: 161,000 SF
Acquisition Date: 10/2011
Disposition Date: 4/2015
Return Multiple: 1.8x
Occupancy – Going In: 87%
Occupancy – Current: 87%

Total Cap Ex: $2.6 M

Business Plan
Undercapitalized property with pending large vacates and over 40% of the asset scheduled to expire within the first 24 months. Execute a major exterior-focused repositioning of the asset in order to fend off vacating tenants, significantly upgrade the condition of existing vacancies, convince the largest tenant to renew and lease up the asset to a stabilized occupancy level.

Results
Immediately executed a significant exterior renovation that successfully upgraded the overall image of the asset. Following completion, immediately focused on securing a lease extension with the 50K sf anchor tenant that was destined to vacate due to overall dated property image and existing space configuration. Hired designers, architect and landscape architect to formulate impactful renderings of both an interior and exterior transformation, resulting in a long term extension and expansion. Following this success, secured a prominent Facebook subsidiary, representing 16% of positive absorption, to make up for lost /defaulted tenancy, to get back to occupancy break even and stabilized the overall asset. This allowed for a disposition at a significant gain that was originally destined to be sold at a loss.

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