Los Angeles, CA, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Younan Properties has sold NorthCreek Office Complex, a three-property park encompassing 325,208 rentable square feet in Colorado Springs, Colorado. Younan Properties purchased NorthCreek in 2015 for $15.8 million from LNR Property part of Starwood Property trust (NYSE: STWD), and sold the complex for $47 million to Alturas Capital, all in under five years.
At the time of purchase, the portfolio had a 40% occupancy with short-term leases. Younan Properties executed a $3.6 million renovation program, which consisted of significant upgrades to the roof, lobby and common areas, as well as improvements to the parking lot, garage and HVAC system, increasing occupancy to 90% in just the first 3 years of its ownership.
“This was another flawless execution by Younan Properties,” says Zaya S. Younan, Chairman & CEO of Younan Company. “We were able to recognize this investment as a great opportunity when others passed on it. We were able to buy it at great basis, and we were able to re-position the 3 buildings in a very short period of time, achieving leasing and absorption far better than the sub-market and competing buildings.”
Located on 17 acres at 5725, 5755 and 5775 Mark Dabling Blvd., the three buildings offer an on-site café, a conference room, and a gym with locker rooms and showers. At the time of closing, the office complex was 90 percent leased to CSAA Insurance, First Insurance Group and Pima Medical Institute, and many others.
Younan continues, “Not only we were able to lease the project from 40% to 90% in just 3 years, but we were also able to increase the rental rates by 50% during the same period, resulting in a 320% ROI. The nature of this transaction underscores our ability to successfully leverage opportunities and create positive value for our investors.”
The CBRE team that assisted the seller consisted of First Vice President James Brady, Senior Vice President Patrick Devereaux and Senior Associate Campbell Davis.
Last month, Younan Properties acquired Two Westlake Park, a 455,000-square-foot office building in Houston. The company had previously owned the asset between 2007 and 2011, when KBS bought it for $80.5 million, and has since announced plans for significant renovations.
ABOUT YOUNAN PROPERTIES
Younan Properties is a subsidiary of Younan Company, a global private equity firm with assets and operations in North America and Europe. Younan Company also owns La Grande Maison Younan Collection, a luxury hospitality division based in Europe.
Younan Properties is a privately held real estate investment and management company, specializing in the acquisition and management of Class A office properties and in strong growth markets throughout the U.S., including Houston, Chicago, Dallas, Los Angeles, Orange County, Phoenix and Colorado. Since inception, YPI has managed more than 200 transactions, having purchased more than 35 million square feet of properties, with completed transactions of over $6.5 billion. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties is full-service with in-house expertise and resources in leasing, asset and property management, marketing, acquisitions, redevelopment, facility engineering and financing. Its senior management team has extensive commercial real estate experience in office, retail, and hospitality, with significant operational, asset management, leasing, finance, and transaction expertise. For more information, visit www.younanproperties.com.
Alexandra Younan Younan Properties 8187039600 firstname.lastname@example.org