The Fordham
By transforming this property from dated to modern, Jevan was able to increase the rental rate by by close to 50% and double the property value.
Property Overview
In December of 2015, Jevan purchased the 102,000 square foot Missouri Commons office complex located in Phoenix, AZ.
The current owners had done a nice job of maintaining the property but the interior corridors, suites, and lobbies were very dated in style and finish levels. Following our investment thesis of investing in the path of economic progress, we purchased Missouri Commons with the plan to completely renovate the common areas, implement a spec unit renovation program, and benefit from the positive trend that had begun in the Phoenix office market.
Strategy
We rebranded the property and changed the name to The Fordham. Renovations to the common areas took 15 months and we updated the lobbies, roofs, courtyards, and corridors. The soft modern finishes in the lobby, brighter corridors, and newly amenitized courtyards along with spec suites have transformed the property from a stodgy office building to a trendy office space.
The market responded positively to our spec suite program with leases being signed between $23 and $24/sqft.
Investment Summary
- Market has responded positively to spec suite program with leases between $23-$24/sqft
- Dramatic 57.7% increase in asset value from 2016 to 2017
- 47.3% increase in rental rate since purchase
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