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.