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