Two undervalued properties with going-in occupancy rates of 68%, well below the average occupancy level of the Salt Lake City industrial market of 91% (source - CBRE). At acquisition, the Salt Lake City industrial market was recovering from a lack of new supply and positive net absorption. Total purchase price represented approximately a 30% discount to replacement cost.
Former owner used a third party operator. By placing a manager onsite, Berkeley Partners effectively leased the properties and successfully implemented operating expense control measures.
VALUE ADD INITIATIVE
Lowered expenses by an average of $0.15 PSF and increased occupancy from 68% to 92%. Increased monthly rent PSF by 11%. Successfully liquidated in 2015.