The Property
The American Identity Building is a five-story, plus terrace level, 107,748 sq. ft. Class A suburban office building that offers an abundance of parking on its extensive 9.2 acre site. The Building is situated in the heart of the College Boulevard/South Johnson County office submarket, which is the strongest submarket in the Kansas City Metro Area. In October, 2006, the Building was suffering from a large amount of vacant space and substantial near-term lease rollover. Vacant space totaled 12,500 sq. ft., and the Building’s anchor tenant had 13,000 sq. ft. of sublease space on the market, bringing the total availability rate to 23.6%.
Acquisition/Assignment
EVS Realty Advisors had been tracking this asset for some time and recognized its great location and quality. This trophy-level Building in Kansas City’s premier submarket was suffering from a large amount of available space. The Building was a core-plus asset and required no capital improvements to remain competitive. EVS Realty Advisors partnered with a high net-worth individual and purchased the Building in December 2006. EVS Realty Advisors was appointed the exclusive management and leasing agent for the Building.
American Identity Photos
Action Plan
EVS Realty Advisors' strategy was to negotiate with the anchor tenant to regain control of the sublease space in exchange for a long-term lease extension. Immediately after the acquisition, the Landlord gained control of the sublease space. Within 30 days after acquiring the Building, EVS Realty Advisors attracted a major new tenant which agreed to lease all of the fourth floor vacancy and all of the sublease space. The anchor tenant was released from its 13,000 sq. ft. lease obligation on floor four in exchange for extending its lease term on 69,000 sq. ft. and expanding into 6,250 sq. ft. of vacant space on the first floor on an as-is basis.
Summary
Building Size: 107,748 sq. ft.
Class: Class A
Year Built: 1983
Purchase Price: $13,150,000
Occupancy % at Acquisition: 76.4%
Occupancy % 90 Days Later: 98.9%
Results
- Percentage leased improved to 98.9%
- Long-term lease for 19,000 sq. ft. to a new tenant
- Long-term lease extension with the anchor tenant
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