Lafayette Terrace is a Class A office building located in Lafayette, CA. The project is a three story office building totaling 47,577 SF of space and situated upon 1.25 acres of land. The project was completed in 1985, and consists of steel-frame construction above two levels of subterranean parking.
Identified Lafayette Terrace early in cycle as office sector began to recover.
Opportunity to acquire the project at a high current return and substantially below replacement cost.
Significant lease expiration risk as roughly 70% of space in building was expiring in first 12 months of ownership.
Significant deferred maintenance of property.
Identified a new tenant for 50% of project prior to close of escrow.
Raised equity, obtained acquisition financing, and closed on deal in under 45 days.
Completed extensive exterior repairs, updated all interior common areas, replaced roof and upgraded most mechanical systems servicing building.
Adopted energy efficient systems throughout building, and achieved LEED Certification.
Project has maintained high occupancy since it was acquired, and presently, is 100% leased, with over 70% of building leased long term to national credit tenants including Arthur J. Gallagher & Company (NYSE: AJG).
Recently refinanced property to achieve long term, low interest rate.