Project: Southwest Office Medical Portfolio
Size: 269,944 Sq. Ft.
Purchase Price: $35,615,624
Sale Price: $41,552,873
Equity Invested: $8,845,340
Equity Realized: $13,064,455
Hold Period: 2.5 Years
IRR: 19.5%
Equity Multiple: 1.5x
Portfolio:
The SW FL Portfolio consisted of seven medical office buildings totaling 269,944 square feet located throughout Southwest Florida. The buildings were owned and operated by a publicly-traded REIT (HRT). Some of the buildings required significant capital repairs. Several of the buildings had substantial near term lease rollover and a large portion of unfinished space.
Strategy:
We repositioned and rebranded the portfolio with capital and cosmetic improvements to the exterior and common areas. We dramatically improved the level of service and tenant satisfaction. We reached out to the local hospital systems. In the key asset (in Venice), we built out the raw space on a speculative basis. We instituted an aggressive leasing campaign.
Results:
We increased occupancy dramatically (by 15% in Venice due to building out and leasing out the former raw space, much of it to the local hospital, and by 20% in Fort Myers), and grew stabilized net operating income by 27%. We sold one building to an existing tenant and one building to a local investor. We sold the institutional grade assets to a publicly-traded REIT (ARC).
**Select individual building case studies shown below.
