Address: 5215 & 5225 Hellyer Avenue, San Jose, CA
Year Built: 1985 & 1986
Building SF: 347,434 SF
Purchase Price: $36 million
Closing Date: February 23, 2017
Projected Hold Period: 2.5 years
Vertical Ventures acquired building at a 7.5% cap on in-place income at a major discount to replacement cost with significant value-add potential.
- Executed 45,000 sf of leases with three tenants in first six months of ownership, Increasing building occupancy from 57% to 72%.
Invested over $6 million in capital to address leasing and renovation plan which include new lobbies, corridors, restrooms, roof, gym, building management office which stabilized the property and increased rental rates by 25%.
- Increased occupancy to nearly 85% after 18 months of ownership.
- Refinanced the property and returned all investor equity within the first 25 months of ownership.