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Eastgate Office Park is a representative illustration of a middle market transaction. This asset is a 546,544 office park investment that was sourced by the Principals through a local operating partner who was seeking a co-investor to contribute part of the sponsor equity capital that was being demanded by the institutional investor.
ECCF’s underwriting concluded that the opportunity of this investment presented:
- an opportunity to make an investment with a talented operating partner with a deep experience in managing under performing office opportunities
- an opportunity to invest in a stabilized office asset in a excellent location; and
- an opportunity with excellent cash flow attributes and a low lease rollover tenant profile.
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ECCF formed an investment partnership that created a limited partner investment in the owning partnership. During ECCF’s ownership, based upon May 2007 financials, the occupancy increased from 81% to 88% and net operating income increased from $3.07 million to $3.54 million. This opportunity also gave ECCF’s partnership the right to contribute in the general partner carried interest after a return of capital and a 12% IRR to the investors.
This Property was sold on August 24, 2007 at a purchase price representing an 18.5% premium to the venture’s sales price. ECCF’s partnership earned a 22.4% net IRR and a 1.4 net equity return multiple on the transaction. |
