DALLAS – After repositioning the formerly distressed property, Hangover Opportunity Fund has divested of the Grapevine I office building. A California-based 1031 Exchange investor purchased the property for an unnamed sum after cold-calling to find out about investment opportunities in the area.
The 38,709-square-foot building is now fully occupied, after Academic Health Plans, leased the final remaining 14,258 square feet to serve as its headquarters. The lease deal was inked while sale negotiations were in the works.
“It should be a well-performing, cash-flowing property with the long-term leases that are in place,” says Renee Efimoff of the Coldwell Banker Commercial Alliance DFW team, who oversaw the leasing and sale of the property.
In August 2011, Hangover Opportunity Fund purchased both Grapevine I and the 20,151-square-foot Grapevine II. A year later Grapevine II was sold to OSK Investments.
During the nearly three years, Hangover Opportunity Fund owned the property, the company worked to renovate the exteriors with awnings and new landscaping; as well as the interiors to build out the space – allowing for six tenants instead of the initial two.
“We were able to take the project from 29% occupancy to 100% because of its location and improvements by our landlord,” says Gary Walker, of Coldwell Banker, in a release.
Hangover Opportunity Fund, which started in 2011, plans to acquire $100 million of value-add and distressed properties, primarily in Texas. So far, the company has purchased 20 properties.