Somerset Properties

Airport Distribution Center

Greensboro, NC

Number of Buildings: 5

Property Size: 764,550 SF

Acquisition Date: March/2014

Sale Date: June/2018

Purchase Price: $19,150,000 ($25/SF)

Sale Price: $32,175,000 ($42/SF)

Deal Level IRR: 29.7

Level Equity Multiple: 2.66x

• Strategically located between the ports of Charleston & Savannah and I-81, Greensboro has become an attractive 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.
• The portfolio was sold to an affiliate of Blackstone, following a competitive, fully marketed sales process.