Medical | Richmond, Virginia
Acquisition: Premier purchased this 5 building, 10 acre campus next to St. Mary’s Hospital in 2006 after a large REIT had backed out of the deal due to environmental problems. The property, which had significant vacancy at the time, was purchased based on in place cash flow and financed with a national insurance company on a 20 year fully amortizing loan.
Actions: Premier systematically renovated the dozen or so vacant suites, putting each one into clean and desirable condition. A new roof was put on the largest building, two 60 ton RTU’s were replaced, and new signage, a new leasing team, and significant landscaping improvement were undertaken. Premier also undertook a major PR effort, both with existing tenants and the local medical community.
Results: Within about a year, the property was over 90% occupied. Unfortunately, we were then struck a tough blow as our largest tenant (17,000 sf) who had been in the building for 22 years left to build their own building. Based on market research and experience, we determined that the 17,000 sf should be divided into 6 or so smaller suites. We brought in an architect to illustrate those suites, and subsequently leased virtually all of those suites to new tenants, stabilizing the property in the process. The property has good cash flow and now enjoys a solid reputation in the community.
Management: Premier has managed this property from the outset to the present, including all leasing, renovations and tenant work.
Ownership: The principals of Premier have significant ownership interest in this property.