Case Study

HICKORY POINTE – Plymouth Meeting, PA

Property Type: Office
Number Buildings: 1
Property Size: 83,055 SF
Acquisition Date: January, 2015
Sale Date: January, 2018
Purchase Price: $8,720,775 ($105/SF)
Mortgage Debt: $6,050,000
Loan to Value: 69%
Sale Price: $15,500,000 ($187/SF)
IRR: 70.6%

Property is centrally located at the intersection of I-76 and I-476 in suburban Philadelphia. Abundant amenities are located within walking distance of the property including two hotels and a variety of dining and retail options including Redstone, PF Chang, and California Pizza Kitchen.

Somerset Properties improved NOI from $728,000 at closing to $1,167,000 (60% increase). Purchase price of $105/SF represented a 58% discount to estimated replacement cost. Somerset Properties improved operating efficiency and curb appeal by completing a new roof replacement, upgrading elevator mechanicals and cabs, renovating restrooms & main entrance lobby, adding new landscaping, and curing deferred maintenance.

Somerset Properties completed 24,000 SF of leasing to improve occupancy from 78% at acquisition to 100% during first twelve months of ownership.

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

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