Acquisition: Premier purchased this 4 building property from General Electric in 2007. It was over 25% vacant at the time of purchase and leasing was stagnant. The property returned approximately 6% on current income at the time of purchase. Many existing tenants were long term but with leases about to expire. The Florida market was on the verge a major slump at the time of purchase.
Actions: Vacant suites that had been vacant for many years showed very badly. Premier undertook a gradual program to clean up all of the vacant suites and put them into clean and presentable condition. Premier also re-branded the property and refurbished all of the signage to give the property a new identity and coherent appearance. Premier retained new leasing brokers and gave them large bonuses for leasing. We also had the entire property of 74,000 sf re-measured and found 1,000 additional square feet in the process.
Results: Within 2 years, despite the extremely challenging market conditions, Premier leased an additional 14,000+ square feet, while only losing about 4,000 sf during the same period. While new leases are at below market rates, they are for short terms and the leases are written to rise to market rates over the next several years if the tenants are successful. In addition, we have added almost 40 years to the existing rent roll by extending existing tenants for long terms at little or no cost.
Management: Premier manages the property in every respect.
Ownership: The principals of Premier have significant ownership interest in this property.