In 2007, Investors Realty sold six buildings in North Park for over $70,000,000 to DBSI Inc., a tenant-in-common sponsor. IRI handled much of the leasing for the park from its inception until its sale, maintaining over 95 percent occupancy and with full occupancy at closing. During the subsequent recession, occupancy fell to 50 percent and four of six buildings went back to the lender. Individual investors lost their entire investments.
Two buildings in North Park were owned by a separate group that was able to keep its tenants. That changed when World Insurance, having occupied one building for nearly 30 years, decided to vacate. Conifer, which occupied half of the second building, also considered leaving.
IRI took over management of the two buildings in 2013, and immediately worked to retain existing tenants and attract new tenants. J.P. Raynor, JD, and Tim Kerrigan, CCIM, SIOR, worked closely with Conifer to keep them in Building 2 and renewed other tenants. They attracted Fusion Medical Staffing to Building 1, bringing both buildings up to full occupancy.
In late 2016, Ember Grummons, CCIM, Tim and J.P. negotiated a transaction with Sterling Office and Industrial Properties, a REIT new to the market, at 96 percent of the buildings’ asking price. This allowed investors to preserve much of their capital, unlike the investors in the other North Park buildings. The sale of the two buildings closed on December 15, 2016 for $11,500,000. Sterling has already proven to be a responsive landlord and has retained IRI to continue the management and leasing of the property. We are proud to welcome Sterling to Omaha and to Investors Realty.
This article appeared in our quarterly newsletter from March of 2017. The full newsletter is available at http://files.investorsomaha.com/download/IR_newsletter_March_2017.pdf