Pacific Corporate Center

Livermore, CA

Address:   7005 Southfront, 7401-7501 Longard Rd, 501 Lawrence Rd (5 Buildings)

Year Built:   2001 & 2002

Building SF:   207,806 SF

Purchase Price:   $23 million

Closing Date:   September 2012

Projected Hold Period:   4 years

Highlights

Vertical Ventures acquired five single-tenant office buildings comprising 207,806 square feet in 2012. The Livermore business complex, on 13.6 acres at 7005 Southfront Road, 7401-7501 Longard Road and 501 Lawrence Road, was purchased for an attractive price and well-positioned to deliver favorable yields.
  • Acquired asset at a 10% cap rate delivering a 13% cash on cash return from the onset
  • Assumed CMBS loan from Seller
  • Leased up existing vacancy and project was 100% leased 9 months after acquisition
  • Managed property for 4 years achieving 15% cash on cash return during the last year
  • Sold building for $28,420,000 ($137/sf) in December 2016

Overview - Realized Project Level Returns

30.1%

Projected IRR

2.6X

Equity Multiple

4 years

Hold Period