Younan Properties, a privately held real estate investment and management company, has sold NorthCreek Office Complex, a three-property park encompassing 325,208 rentable square feet in Colorado Springs. 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 percent 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 percent in just the first three 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 three 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 percent to 90 percent in just three years, but we were also able to increase the rental rates by 50 percent during the same period, resulting in a 320 percent 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.
Photo courtesy of Younan Properties
