Westway
Arlington, TX
Westway was an 8 building, 354,000 square foot flex portfolio bought from an institution. It was a combination of 5 late 1980’s era flex buildings, 1 two-story Class B office building, and 2 new Class A flex buildings. One flex building was substantially vacant, and the other was completely vacant (and had been for 2 years). The owner had lost momentum and was unwilling to be creative to fill the vacancies. A 10 year conduit note was put in place at a very low interest rate (5.05%). Within 9 months, we had leased the majority of the vacancy, actually attracting a 100% office user into the vacant flex building by offering a rental rate far below the office buildings the tenant was considering elsewhere. Although the office build-out was substantially higher than budget, so was their rental rate, creating substantial value. Additionally, our assumable loan featured a rate well below market, also adding value. Westway was sold in 21 months, generating a nice return.