Capitol City Business Center

The single-story office building is located in Salem, OR. When acquired in May 2005, the building was vacant except for a 100,000 square foot short-term lease back from the seller. The investment was predicated on acquiring the building at a fraction of replacement cost and redeveloping and re-leasing the building at competitive rates to government and large private sector users. Following the acquisition, we immediately brought in new third-party property management, lowered operating costs, and began developing a renovation plan for the common areas of the building including three new entrances, a new great room and new common areas. We completed ~$1.8 million of base building improvements, converted 31,000 square feet of warehouse space into office space, and executed 200,000 square feet of new leases to stabilize the building at 85% occupancy. In December 2011 we sold the building to an institutional investor resulting in an IRR of 7% and a 1.4x equity multiple.