104,534 square foot, five-story, class “A” office building.
Located in the heart of downtown Chandler, AZ, a dynamic ‘live, work, play’ environment and one of the most sought-after locations in the Phoenix metro area.
Acquired for $17.0mm in December 2015.
95% occupied at acquisition, but with 61% leased to one tenant possessing contraction and termination options.
Business plan included increasing net operating income through completing capital improvements and raising rental rates, and potentially modifying the anchor tenant lease to remove the contraction and termination options.
Sold property October 2019.
Implemented a $0.8mm capital improvement program to replace the roof, modernize elevators, and construct ‘spec’ tenant suites.
Negotiated a modification of the anchor tenant lease to increase their base rent by 26%, extend their lease by 19 months, and eliminate their termination and contraction options; in exchange for which their space was reduced by 33% and they were provided with four months of future rent abatement.
Signed over 17,000 square feet of new and renewed leases at asking rents above underwritten levels.