1080 Silver Bluff Rd, Aiken, SC
1080 Silver Bluff Road, Aiken, SC, 29803
Acquisition Date: January 2015
Acquisition Price: $2,960,000
Acquisition Cap Rate: 11.5%
Current Market Value: $4,500,000
Building Size: 28,845 SF
Acquisition Cost per SF: $102.63
Property Type: Office
Tenant: Parsons Government Services Inc.
Occupancy: 100% (single tenant)
Investor Returns: N/A (no investors – principals only)
Highlights: This property is a quality office building in a solid location with a class A tenant. At acquisition, the existing lease with the tenant had a remaining term of less than 2.5 years, resulting in a favorable acquisition price due to the perceived risk of non-renewal by the tenant. Envision mitigated the risk of non-renewal through: (i) a creative acquisition structure, including about $360,000 in holdbacks from the purchase price that were earmarked for use in procuring a lease extension, and (ii) performing extensive due diligence, which revealed that the tenant intended to remain long term. In March 2017, Envision procured a new 5-year “landlord friendly” lease which increased the NOI by more than 20% through leasing of additional space that was vacant at acquisition and increasing the per square foot rental rate. The holdback funds were used to provide tenant improvement allowances and credits to the tenant in order to procure the new lease.