Today, we share the collective optimism of many with respect to transitioning into a post-Covid economy.
Final collections review
Over the last year, we have collected contractual rent obligations from every tenant but one and are in active discussions to backfill that 2,043 sqft suite by expanding an existing tenant. Furthermore, any rent relief was evaluated on a case-by-case basis and ultimately only granted to three tenants.
New lease: Truist Bank
At the Allied Solutions Building, we recently signed Truist Bank to a 63-month term with two 5-year extension options.
Overall, we have limited vacancy and despite the overall pressure on office leasing, not only did we sign leases through the pandemic, but maintain active discussions on available space.
Dividend & NAV performance
Our dividend distributions (8.4% in 2020) were within the range of our expectations and prior communications. Our NAV has been steady given the stabilized nature of our portfolio and a supportive capital markets environment.
We are optimistic about a future where amenitized, suburban-urban office locations outperform their pure suburban or Central Business District counterparts. In the long run, we believe the quality and location of our properties will continue to allow us to weather other economic storms better than most.
Given the vaccine rollout, we look forward to a very active summer season in the community space at our Allied Solutions Building, and hope to see more lease requirements hitting the market.
We are actively searching for not just new acquisitions, but other strong risk adjusted return opportunities, including preferred equity in the $3-10mm range where capital is somewhat less efficient today than for direct acquisitions or senior financing.
As real estate investors first, we have a keen pulse on the market and will always maintain flexibility to be able to deliver relative and total returns to continue compounding shareholder capital.
Eliot Bencuya is the co-founder and CEO of Streitwise. Eliot has extensive experience identifying, underwriting, and executing value-add real estate investments.
Prior to forming Streitwise, he was a Vice President of Acquisitions for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for originating, underwriting, structuring and executing transactions in the Pacific Northwest, Northern California and Midwest regions. Mr. Bencuya also held positions at Sovereign Investment Company (a subsidiary of the Marcus and Millichap Company) and the investment banking division of Merrill Lynch & Co. He holds a Bachelor of Arts degree in Economics and International Studies from Yale University, and a Masters of Business Administration degree from the Haas School of Business at the University of California, Berkeley. Mr. Bencuya is a member of ULI.