Acquisition: Premier purchased this aging 45,000 sf medical property from National Life in late 2012. The property was approximately 25% vacant with a number of leases expiring in less than a year. The property suffered from other problems as well, including dated branding, weak tenant relations, poor market positioning, and deferred maintenance. As a result of these challenges, and Premier’s long term relationship with the seller and broker, Premier was able to acquire the property at a nearly 12% cap rate based on current income. The property was financed by the Army Air Force Mutual Aid Association, and this transaction represented the 7th loan Premier has financed with this lender. Significant equity was provided by 888 Realty Investors.
Actions: Premier completed a significant renovation of the property, including exterior painting, renovating virtually all of the vacant suites, upgrading electrical components, adding video security, re-engineering and re-paving the parking areas, re-branding the center, installing new signage, and more. Through enhanced tenant communications, many renewals were signed and many new tenants added.
Results: During the entire ownership period this property it paid out a 10% current return, and in early 2016 Premier Medical Center was sold at a substantial profit. Premier is pleased that all of the investors from Premier Medical Center have since committed to participate in future Premier projects.
Management: Premier managed this property from start to finish.
Ownership: The principals of Premier had significant ownership interest in this property.