Meriwether Partners

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.

Meriwether acquired the GSA Building in February 2003 from a bankrupt owner. The single-story office buiding was 100% leased on a long-term basis to the GSA. At the time of acquisition, the building suffered from virtually non-existent property management which resulted in deferred maintenance and poor tenant relations. After improving tenant relations by hiring an on-site property management staff, making cosmetic improvements to the building, and lowering operating costs, Meriwether sold the building in August 2005 to a private investors generating an IRR of 23.8% and an equity multiple of 1.64x.

Meriwether acquired an existing Red Lion hotel in August 2005 with plans to extensively renovate the asset and re-brand the hotel. Prior to closing, Meriwether finalized a $5.5 million renovation plan and signed a franchise agreement with SpringHill Suites by Marriott. The investment was predicated on the strong Boise economy, the improving Boise hotel market, a best-in-class operator/partner, a realistic renovation plan, and the solid Marriott brand. Meriwether completed the renovation on-budget in February 2006. Over the next year, Meriwether re-established the hotel in the market and implemented an aggressive marketing campaigns for corporate and other group business. Meriwether sold the hotel in September 2007 to a REIT after determining increased competitive supply would severely dampen near-term operating results. The sale generated an IRR of 9.8% and a 1.21 equity multiple.

Meriwether acquired the Market Street Warehouse in September 2005 from Associated Food Stores. The property consists of 11,000 square feet of office, 60,000 square feet of refrigerated warehouse, 30,000 square feet of freezer warehouse and 148,000 square feet of dry warehouse. The building was 21% leased at the time it was put under contract to purchase. After leasing up the vacant space, Meriwether converted the project into a condominium and sold the dry warehouse and office portion for $6.9 million in December 2007. This transaction allowed for a complete return of capital plus a 10% preferred return.