Meridian
Acquisition Date | October 2013
Disposition Date | December 2014
Year Built | 1999
Class | A
Size | 240,153 square feet
Building Height | 10 Stories
Location | 4055 Valley View Lane, Farmers Branch, TX 75244
IRR | 10%
Actual Multiple | 1.8x
The Opportunity
- Profit from a rent roll 18% below market
- Acquire an asset that has been under managed and leased
- Acquire a value add asset with a reduced risk profile
- Acquire an asset at below 50% of replacement cost
The Strategy
- Leverage from a 90% occupancy rate to raise rents and income
- Capitalize from 86% of the building leases that expire during the first 4 years of the hold period
- Implement a capital improvement program to renovate common areas and restrooms to boost market demand and rental rates for the building
The Result
- Rental rates achieving proforma
- Irving and Las Colinas continue to be a preferred submarket
- Disposition anticipated 2019
