11720 Sunrise valley drive
Transaction Summary
| Source |
Failed Auction |
| Investment Date |
March 1999 |
| Property Description |
Office |
| Location |
Reston, VA |
| Property Size |
73,000 SF |
| Asset Attributes |
- Building was occupied by multiple tenants with largest tenant comprising 22,393 square feet
- Largest tenant had indicated its intent to vacate and original owner had ceased negotiating a buyout
- During due diligence, Penzance discovered tenant had substantial letter of credit, providing landlord with negotiating leverage
- Based on new information, collected a fee for early termination of the lease
- During due diligence and careful scrutiny of zoning documents, Penzance discovered opportunity to develop additional 300,000 to 400,000 square fee
|
| Value Creation Plan
|
- Re-lease approximately one third of the building at market rates
- Actively managed leasing process through highly personalized customer service at each walk-through and intense oversight of leasing brokers
- Managed build out of "model" space to transform a "commodity space" into a "must-have" space
- Additional FAR identified during due diligence provided for long-term redevelopment options, making project more attractive to potential buyers
|
Results
|
- Negotiated a lease buyout of major tenant and, in approximately three months, leased the building to 93% occupancy in market where the average vacancy was 30%
- Sold asset and additional density to developer who was assembling the adjacent parcels for a larger mixed-use development
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