Case Study


Property Type: Industrial Warehouse
Number Buildings: 5
Property Size: 764,550 SF
Acquisition Date: March 2014
Sale Date: June 2018
Purchase Price: $19,150,000 ($25/SF)
Mortgage Debt: $10,350,000
Loan to Value: 54%
Sale Price: $32,175,000 ($42/SF)
IRR: 43%

Strategically located between the ports of Charleston & Savanah and I-81, Greensboro has become an attractive distribution center for companies that serve the Northeast but prefer to avoid traffic on I-95.

Somerset Properties acquired the portfolio from a Private Equity Fund that was at the end of its hold period and motivated to sell. By completing a comprehensive capital improvement program that included new lighting, fire sprinklers, loading dock levelers, and repairs to roofs and parking lots, Somerset Properties was able to improve occupancy from 73% to 100% and increase NOI from $1,342,000 at closing to $2,059,000 (53% increase).

Stabilizing the rent roll included the relocation and expansion of two existing tenants in order to create a full building vacancy which was leased to a new 226,320 SF credit-tenant for a five year term.

IRR has been calculated after any transaction costs but before any fund level fees or carried interests

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