Offices at Midtown
- Date Acquired: July 2016
- Location: Montgomery, AL
- Asset Type: Office Building
- Post Acquisition Strategy: Exterior Renovation, Rebrand, and Lease-Up
About this Property
In July 2016, Larkspur acquired a 200,000 square foot office park for $2.5mm from a special servicer. The office park had been the subject of protracted litigation during a bankruptcy proceeding which resulted in the loss of many tenants and the dilapidation of the property. At the acquisition date, the occupancy was 38%.
Larkspur commissioned a local design-build firm to renovate the facades of the six-building complex, replace all signage and install new landscaping. In addition, Larkspur rebranded the office park to Offices at Midtown in order to remove the negative perception of the prior owner in the local market. Within three months of acquisition, Larkspur signed Rheem Manufacturing as an anchor tenant to a 10 year lease for approximately 30,000 square feet. Additional leases from state government agencies and local business followed driving occupancy to 80% by the end of 2018. Larkspur subsequently refinanced the property and distributed the majority of initial purchase price back to its partners.