Address: 7200 Bancroft and 6955 Foothill
Year Built: 1965-1972 (Renovated in 1997 & 2009)
Building SF: 541,000 SF
Acquisition Date: March 6, 2015
Projected Hold Period: 4 years
Enclosed shopping mall originally known as Eastmont Mall located on 33 acres in Oakland. The property was subsequently converted to multi-tenant office. With below market rents and occupancy of 82% at acquisition, the project presented an attractive opportunity to increase occupancy and NOI.
- Acquired asset for a 10% cap rate with over 60% of the project occupied by credit tenants.
- Executed approximately one million dollars of capital improvements including a new energy efficient “cool white” roof. Implemented other “green” energy improvements such as rooftop solar panels to reduce carbon footprint and utility cost
- Increased NOI by over $1M in first 24 months of ownership due to significant reduction of operating expenses and aggressive lease-up of vacant space. Completed over 100,000 square feet of leases since acquisition
- Refinanced the property in year 3 and returned over 100% of investor equity. Refinancing was achieved at a value 60% higher than acquisition price due to strong property cash flow and increased in NOI.
- Produced an annual 15% cash on cash return in year 3 of ownership.