Flex | Manassas, Virginia
Acquisition: These 3 flex buildings were acquired over several years in the mid 1990s. Two of these buildings were purchased from Riggs Bank (now PNC), and one was purchased from a window manufacturer. The three buildings total about 75,000 sf, and are all in close proximity to each other. Financing was also through Riggs, although the buildings are now debt free. At the time of purchase, one of the buildings was completely vacant, and one of the buildings had a 15,000 sf tenant in trouble. The buildings were bought at very favorable prices.
Actions: We converted virtually all of the warehouse space in these buildings into office over a period of several years, and subsequently achieved full occupancy. We have replaced roofs and done several major buildouts since then, including creating a lab for a biotech company, a training center for an international technology company, and offices for a utility company.
Results: One of the buildings was sold for a $2M+ profit in 2006. The other buildings are currently debt free. We are recently experiencing some vacancy due to market conditions, but fortunately have the flexibility to lease at very low rents and are currently negotiating with a national tenant.
Management: Premier has managed all of the properties from the beginning in every respect. At the time of sale, Premier also kept the management of the building that was sold.
Ownership: The principals of Premier have significant ownership interest in this property.