The Freedom Building

dulles.jpg

Flex-Office | Dulles VA

Acquisition: Premier purchased this building next to Dulles Airport in 2002 for about $100/sf with over 10,000 sf vacant and no long term leases. This attractive building had been built by Col. Oliver North (Iran Contra Affair) in 1997 to house his offices and his bullet proof vest manufacturing company. Subsequently he did a sale lease back on the building, and the bullet proof vest company went bankrupt. The property was about 1/3 office, 1/3 warehouse, and 1/3 manufacturing. Of course, at the time of purchase, the entire manufacturing area was vacant. The property was financed for Premier by the Army Air Force Mutual Aid Association on a 20 year fully amortizing loan.

Actions: Premier had to remove all of the manufacturing equipment and demise and reconfigure the manufacturing area into leasable space. In the process we created a completely new entrance to the building facing the main road, added windows and glass doors, awnings, and walkways. As a result, we were able to lease the entire area. It took several years to fully stabilize this project, since some of the smaller original tenants were technology firms that failed along the way.

Results: The property is now 100% leased and produces positive cash flow.

Management: Premier has managed this property from the outset to the present, including all leasing and contracting.

Ownership: The principals of Premier have significant ownership interest in this property.

Battleview Business Park

battleview-business-park.jpg

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.

Mosby Tower

Office-Retail | Fairfax City, Virginia

Involvement: Premier was hired by the absentee owner to manage this 113,000 sf office and retail building with almost 100 tenants at the end of 2011.  The property was 61% occupied at the time and most of the leases were on very short terms.  The resulting financial situation was straining the leasing and maintenance programs and challenging existing tenant and lender relations.

Actions: Premier immediately interviewed the existing onsite staff and determined that they had the necessary skills, but needed more direct supervision.  After hiring the staff, Premier  established low cost but aggressive leasing and cosmetic upgrade programs.  Some of our actions included restoring a restaurant space destroyed by fire to leasable condition, renovating the elevators, solving a long standing water metering issue, working with zoning counsel to modify outdated proffers that were restricting leasing options, updating the form lease documents to provide for easier executions and longer terms, instituting a new website and online advertising program, and dividing some of the larger suites into smaller, more market friendly, units.

Results:  Within 18 months occupancy climbed to 82%.  In 2012 Premier was offered an opportunity to participate in the project financially and became the managing partner of the new ownership entity.  In 2014 we refinanced the property and cashed out the entire original equity investment.  In late 2015 Mosby Tower was sold to a local investment company at a profit that generated a healthy multiple of the owners’ original equity investment. Premier Management continues to manage the property for the new owners.

Management: Premier manages this property.

Ownership: The principals of Premier do not currently have an ownership interest in this property.