550 Highland Street, Frederick, MD

550 Highland Street, Frederick, MD, 49014

Acquisition Date: Oct 2015
Acquisition Price: $16,000,000
Acquisition Cap Rate: 8.0%
Current Market Value: $16,500,000
Building Size: 182,650 SF
Acquisition Cost per SF: $87.60
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.

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