News

HUSREF V Completes Acquisition of Office Portfolio in Phoenix, Arizona

Birmingham, Alabama, Dec. 15, 2014 – Harbert United States Real Estate Fund V, L.P. (“HUSREF V”), in conjunction with Cypress Office Properties (“Cypress” or together with HUSREF V, the “JV”) recently held a simultaneous close on the acquisition of Fountainhead Corporate Park, a five building, 476,000 square foot, Class-A- office campus in Phoenix, Arizona, and the sale of three of those buildings to the largest tenant in the park, Allegis.  Although initially underwritten as a five building portfolio acquisition, the JV pursued the simultaneous sale of the three buildings to Allegis, which represent 40% of the portfolio square footage, to capitalize on the opportunity to materially improve the base case return profile while also de-risking the execution of the transaction.  The remaining two buildings in the portfolio that the JV purchased total 287,000 square feet and will undergo a targeted $4.0 million renovation plan starting in Q1 2015.  The planned renovation will modernize building common areas and create a more cohesive and better amenitized campus environment, which is intended to in turn drive leasing demand to the currently 72% occupied portfolio.

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