Acquisition: Premier purchased this property from General Electric in 2005. The property was over 30% vacant and had 3 different environmental issues – asbestos, underground storage tank leakage subject to a superfund cleanup, and benzene gases of unknown origin in the basement. The loan was made by Army Air Force Mutual Aid Association based on a long standing relationship with this lender.
Actions: The property was purchased based on current income. Premier took the lead to define and remediate environmental concerns and worked with GE on that process. Premier then operated and leased the property while undertaking a complete renovation of all common areas, replacement of most HVAC components, including a new boiler and 30 FCUs, security systems, pavement work, repositioning and re-naming the property, new signage, building out of storage areas, asbestos remediation, renegotiation of major leases, etc. Premier retained local land use counsel to obtain a special zoning exception and finally converted the entire project to condominium the following year.
Results: At this time all but 2 of the 30 or so condominium units have been sold, and the project has long since become debt free and generated a substantial profit.
Management: Premier has managed the project from acquisition through development and sales. Premier has also been competitively selected by the Condominium Association to manage the property, which is testament to Premier’s excellent ongoing relationship, even though the developer no longer has control.
Ownership: The principals of Premier have significant ownership interest in this property.