Comunale purchased the 88,000 square foot three suite property from an out of state investment fund that was exiting the market to focus on larger, more primary markets. The acquisition was completed in an expedited 30 day period on an all cash basis to meet the needs of the seller. The property had suffered as a result of absentee management, and within a short period after the acquisition the existing leases were rolling and the building would be 100% vacant. Comunale quickly completed improvements to the property and embarked on a fresh marketing campaign. Within six months of ownership, approximately 50,000 square feet of space was leased, and within two years the building was brought to 100% occupancy during the recession. Comunale has improved the property by upgrading all three tenant suites, installing a new roof, and enhancing the exterior of the building. After stabilizing the property, Comunale entered into a fixed rate financing with a 20 year term with a life insurance company and plans to keep the asset for a long term holding period.
Carter Street is an example of Comunale’s value-add to stabilization strategy to create long term cash flow for its portfolio and high quality, well-priced facilities for its tenants.