550 Highland Street, Frederick, MD
550 Highland Street, Frederick, MD, 49014
Acquisition Date: Oct 2015
Acquisition Cap Rate: 8.0%
Building Size: 182,650 SF
Property Type: Office Park/Flex
Tenants: multi-tenant with Triumph Group occupying over 40%
Occupancy: 98%
Investor Returns: Over 12.5% annual return on investment, in line with projections (not including increase in property value)
Highlights: In this off-market transaction, Envision obtained attractive high leverage non-recourse senior debt and seller financing (structured as preferred equity), and implemented a creative structure with three layers of equity, resulting in high yields to investors. The property also includes additional upside with approximately 8 acres of excess land and a 30,000 SF building constructed by Triumph and for which no rent is paid, which results in a blended below market rent.
At Envision, our main goal is to identify and procure properties that provide stable, long-term and high-yield investments with returns that outweigh the risks. Our unique and creative approach in operating our company and structuring transactions allows us to effectively achieve this goal.