The deal was financed by GB Value Partners, a private equity real estate fund. It was a direct deal, where neither the buyer nor the seller used a broker.
The previous owner also was the manager and the occupancy rate had been hovering in the 75% to 79% range. The sellers allowed Griffis Blessing to manage and lease it before the deal closed and it was 82% occupied by closing.
The building has been suffering from deferred maintenance, and Griffis Blessing plans to spend $1.2 million in capital improvements. That will include painting, new roofs, a new fence, upgrades to two swimming pools, a new leasing office and fitness center. When Griffis Blessing sells the property, it expects its return on the investment to be in the high teens.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.