Cambridge Court
Phoenix, AZ
Net Rentable Area: 46,000 SF
Purchase Date: July 2004
Sale Date: October 2005
Description:
A 46,000 SF class B office building located in Central Phoenix; the building was 73% leased at acquisition. Income provided a going-in cap rate of 5.5%, despite the low occupancy.
Strategy:
The strategy was to renovate the building and lease up the vacant space with $500,000 reserved in our interim loan for upgrades.
The project was painted, landscaped, and new signage was installed, dramatically enhancing its curb appeal. Many interior spaces were reconfigured.
Result:
With an acquisition cost of only $53/SF, we had the advantage of an extremely low basis. We sold the project to a developer for a nice profit.