.ashx?bid=4a2e5ebb5bdb40cab633b8e28e053c66)
Case Study: The Normandin Office Portfolio consisted of two buildings, Creekview Corporate Center and Indian Creek Campus I, totaling 234,016 square feet. Both buildings were located in South Johnson County and were sold as a portfolio to a local investor for $33,250,000, or $142 per square foot.
| Sale Date | 11/1/2016 |
| Purchase Price | $33,250,000 |
| Price Per Square Foot | $142 |
| Cap Rate | 8.25% |
| Buyer | Tower Properties |
| Seller | Normandin Investments, LLC |
| Listing Broker | Colliers International | KC |
Challenges: The buildings were cross-collateralized in a CMBS loan with a year-end maturity and had to be sold together.
Both buildings had large lease rollover exposures with only 2.6 and 2.9 years of remaining average lease terms.
Creekview Corporate Center had a large concentration of call center tenants, which was viewed negatively by the market
Mitigants: Excellent locations within Kansas City's top office submarket with an acquisition price well-below the replacement cost.
Long lease durations of 9.9 and 9.0 years, showing commitment by the tenants to the buildings.
Class A building with large floor plates, high-end interior common area finishes, and above-market parking ratios.
Market Reception:
- Strong interest due to size of the offering (0200,000 square feet), submarket, class of building
- 35 confidentiality agreements: 9 local buyers (26%) and 26 national buyers (74%)
- 6 property tours: 2 local buyers (33%) and 4 national buyers (67%)
- 5 letters of intent: 1 local buyer (20%) and 4 national buyers (80%)
- Best and final round offered to top 3 bidders: 1 local buyer and 2 national buyers
- Final sales price represented a $1,000,000 premium over original offer by buyer
| Creekview Corporate Center 12900 Foster Street Overland Park, Kansas |
Indian Creek Campus I 10740 Nali Avenue Overland Park, Kansas |
||||||||||||||||||||||||||||
|
|
Timeline
| June 7, 2016 | Signed Listing Agreement |
| June 16, 2016 | National Marketing Campaign Commencement Email campaign to list of national list of buyers Active calls to top buyer prospects Property tours |
| July 27, 2016 | Call for Offers |
| July 29, 2016 | Best and Final Offers Submission Top three bidders |
| August 8, 2016 | Buyer Interview and Selection |
| August 30, 2016 | Executed Purchase and Sale Agreement |
| September 30, 2016 | Expiration of Due Diligence |
| November 1, 2016 | Closing |
147 days (5 months) from listing agreement execution to closing.