The property, a 68,322 square foot medical office complex located in Johns Creek, Georgia (suburban Atlanta) was purchased in 2013. The Class B+ properties were acquired for $4,150,000 through a lender short sale. The property included two, two-story medical office buildings, two medical office condominiums and a land parcel.
The investment strategy implemented was to upgrade the common elements of the medical office building and utilize the favorable basis to compete for tenants with a very competitive rental rate. The various components of the investment were sold separately to both users and investors. The last medical office building sold for $5,900,000 in September, 2020. Total proceeds from the sale of all of the investment components exceeded $11 million. The total investment represented a 19.1% IRR and a 3.0 times equity multiple.