- Date Acquired: December 2016
- Location: Indianapolis, IN
- Asset Type: Flex-Office Building
- Post Acquisition Strategy:
Exterior Renovation and Re-Tenant
About this Property
In December 2016, Larkspur acquired a 60,000 “Flex-office” building in Indianapolis, IN from a special servicer for $1.6mm. The property consisted of small-bay spaces from 1,000 to 3,000 square feet which housed small local businesses. The property suffered from years of neglect with little to no management oversight resulting in substantial tenant delinquency. At the time of the acquisition, the property’s physical occupancy was 75% but 20% of those tenants were not paying rent.
Larkspur retained a local law firm to initiate collection efforts against all delinquent tenants while simultaneously hiring a local design-build firm to renovate the entire exterior of the property. Following the renovation, Larkspur was able to re-tenant the building and command a 25% increase in rental rates. The building’s occupancy is now 85%.