Equastone paid $12.7 million for the Quad at Lowry IV in December 2004 when the building was 48% occupied. Now, the building is fully occupied. The recent sale will generate a net-annual return of approximately 70% to the fund. Mary Sullivan, Timothy Swan and Ron Urgitus of CB Richard Ellis represented Equastone in the transaction.
"We acquired a high-quality asset significantly below replacement cost and projected stabilized value and leased the vacant space within nine months," says David Bourne, chairman of Equastone. "Further, the property was sold in short order due to strong demand for stabilized real estate assets."
The Quad at Lowry IV was acquired from a large financial institution that had taken control of the property from its development partner. At the time of acquisition, the property had one tenant that was experiencing financial difficulties. Equastone's asset management team immediately downsized the existing tenant and began an aggressive leasing program.
EVF I is a private real estate fund that was launched in September 2004 and closed to investors in September 2005 with $53.5 million of capital contributions. EVF I has acquired a diversified portfolio of 14 value-add office properties totaling $215 million in Arizona, California, Colorado, Nevada and Texas. The investment objective of EVF I is to produce 17% to 20% net annual returns to investors during a five-year term. Equastone acquires, improves, leases, operates and sells commercial real estate on behalf of Equastone Real Estate Funds. Equastone and its affiliates currently have offices in La Jolla, CA, Phoenix and Denver.
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