Case Study

One of Stamford’s premier CBD office properties, 1055 Washington Boulevard consists of 182,000 square feet with enclosed structured parking, superior construction and exceptional finishes with a granite and glass exterior.

An excellent CBD location location within walking distance to all CBD amenities and commuter rail station. It is in close proximity to major highways, has existing tenant longevity, leasing history and pro-forma value. 

20% vacancy and a 70% roll-over risk within three years in a leasing market with the lowest leasing velocity in over eight years.

Existing $19,000,000 conduit financing at 7.72% interest, a participating ground lease and substantial tax exposure for the owner.. In addition, there were ongoing lawsuits between the owners, the City and other adjacent property owners .

Considered Westchester’s Trophy Building, this 280,000 square foot office building previously served as Nestlé USA Corporate Headquarters.

Although 100% leased, the building is located in a market with traditionally high vacancy rates. 50% of the building was leased at below-market rents with lease expiration's 13 years out.

Operating expenses were at above-market levels, due to Nestlé operating the facility as a corporate headquarters.

Investments in Westchester Offices had not exceeded $130 PSF (other than a few UPREIT transactions with significant development land components) in over ten years. The REIT Investment appetite for stabilized properties was negligible .

Market rents had just started to grow in a market that had virtually no rental rate growth in ten years.

Located in prestigious Fairfield County Connecticut, the property consists of an 80-acre site with 635,000 square feet of office, industrial and flex space.  

It had 150,000 square feet of the office space vacant. 

Positioning this opportunity required a combination of multi-tenancy, future leasing and additional development analysis and valuation.

The property offered significant challenges including environmental and access issues. Pricing was also a major hurdle. The property was acquired by SSR/MetLife two years prior for approximately $21,000,000 with few improvements or changes to the Net Operating Income (NOI) since acquisition. The objective was a $40,000,000 target sale price which we established!

The property required significant equity and additional capital Improvements.

Multi-Tenant 157,000 square foot, Class A and B Office Complex, 92% leased.

40% of the building’s leases were rolling over or had termination options during the first and second years, which, combined with existing vacancy resulted in close to 50% of the building in possible transition

There was a significant slowdown in leasing activity and increases in vacancy rates in the local, regional and national office markets.

Multi-tenant 119,000 square foot Class A office property.

35% vacant. 

One tenant occupies 52% of the building, with a lease expiring in two years.