In 1999 we identified an opportunity to acquire an older, 175,000 SF flex/industrial project. It was particularly well located, but lease rates were below market and the project needed a capital infusion to complete some deferred maintenance. We closed on the property and successfully executed our business plan, finally selling the project in 2006 for a significant premium over our cost.
From this beginning, we have made more than 20 additional property acquisitions totaling approximately 5 million square feet of space. Acquired properties range in scope from older industrial projects in Charlotte to Class A office buildings in the Raleigh-Durham market. Typically our acquisitions fall into the “value add” category. We usually identify properties that are undervalued as a result of a misguided leasing strategy, poor management or the need for reinvestment/repositioning. However, we have also purchased efficiently functioning properties that needed little work – simply because we perceived a pricing inequity.