Somerset Properties

East Ridge at Perimeter Park

Raleigh, NC

Number of Buildings: 8

Property Size: 478,627 SF

Acquisition Date: April/2016

Sale Date: September/2020

Purchase Price: $46,850,000 ($98/SF)

Sale Price: $75,650,000 ($158/SF)

Deal Level IRR: 27.7%

Deal Level Equity Multiple: 2.41x

• Centrally located just off I-40 within minutes of the Research Triangle Park, East Ridge is highly accessible and is able to draw decision makers and staff from throughout the region.
• The single-story, flexible design provides tenants with direct street level access to their space and accommodates a wide variety of uses, including office, showroom, light assembly, and lab. 16’ clear ceiling heights allowed Somerset Properties to create the Next Generation, collaborative, creative interior look that tenants want today.
• The property had been acquired by an institutional investor as part of a large underperforming loan portfolio. Little attention was paid to the property and Somerset was able to negotiate an attractive purchase price that was nearly 40% low replacement cost.
• Somerset Properties completed renovations to cure deferred maintenance and improve curb appeal with new landscaping, signage, and parking lot improvements. Outdoor seating areas in a park-like setting were created and a new common amenity center was constructed, which included conference & training rooms, tenant WI-FI lounge, fitness center, and locker rooms. The renovations and new tenant improvements allowed Somerset Properties to increase occupancy from 75% to 94% within 24 months of acquisition.