The Monroe Building: Office and Medical Building

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Medical-Office | Manassas, VA

Acquisition: Premier purchased this 1970’s era 4 story office building across from Prince William County Hospital from Canadian Life Insurance Co. in 1996. At the time of acquisition, the property was completely vacant and abandoned, and as a result had lost the zoning for which it had been previously grandfathered.

Actions: Premier brought in local counsel to secure the zoning rights, then acted as general contractor in gutting the building to the cinderblock.  At that point we cut in new windows, created an upscale lobby, put on a new roof, rebuilt the elevators, painted the exterior with new accent colors, and finally renamed and repositioned the property for leasing.

Results: The property was then leased up and financed with a 20 year fully amortizing loan.  We achieved 100% occupancy within the first 2 years and significant positive cash flow over the next 10 years, and the loan will soon be paid off.  In the past few years we have lost some tenants due to the economy, but with recent new leasing we are again approaching full occupancy.  Additional income is also generated by two national telecommunications companies who are leasing our roof space for their antennas.

Management: Premier has managed this property from the acquisition to the present. Premier continues to oversee all leasing and tenant fit out as well, for this and all properties.

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

Premier Plaza: 70,000 sf Medical Building

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Medical | Springfield, VA

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.

Richmond Medical Park

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Medical | Richmond, Virginia

Acquisition: Premier purchased this 5 building, 10 acre campus next to St. Mary’s Hospital in 2006 after a large REIT had backed out of the deal due to environmental problems. The property, which had significant vacancy at the time, was purchased based on in place cash flow and financed with a national insurance company on a 20 year fully amortizing loan.

Actions: Premier systematically renovated the dozen or so vacant suites, putting each one into clean and desirable condition. A new roof was put on the largest building, two 60 ton RTU’s were replaced, and new signage, a new leasing team, and significant landscaping improvement were undertaken. Premier also undertook a major PR effort, both with existing tenants and the local medical community.

Results: Within about a year, the property was over 90% occupied. Unfortunately, we were then struck a tough blow as our largest tenant (17,000 sf) who had been in the building for 22 years left to build their own building. Based on market research and experience, we determined that the 17,000 sf should be divided into 6 or so smaller suites. We brought in an architect to illustrate those suites, and subsequently leased virtually all of those suites to new tenants, stabilizing the property in the process. The property has good cash flow and now enjoys a solid reputation in the community.

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

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

Premier Medical Center

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Medical | College Park, Maryland

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.