Ascentris recognized there was an opportunity to acquire and reposition under-performing office properties located in the technology and energy corridors of the United States. At the time, the U.S. employment market was early in its recovery, there was limited office supply on the horizon and technology and energy employment gains were starting to fill existing, under-utilized office space.
Ascentris, and its operating partner, acquired Kirkwood Tower, a 72% leased Class B Office building well located in the heart of Houston’s Energy Corridor, home to numerous multi-national corporations including BP, ConocoPhillips, ExxonMobil, Shell Oil, SYSCO Corporation and GE Oil & Gas. After acquiring the property for a below-market purchase price once it had fallen out of contract, the partnership immediately began a lobby renovation, curtain wall restoration, parking garage repairs, common area modernizations and converted asking rents from full service gross to triple net. Upon repositioning the property, the partnership reintroduced it to the leasing market and quickly increased occupancy from 72% to 92%.
Upon stabilization, the partnership marketed the property for sale when an abundance of capital was entering the Houston office property market.
Disclaimer: The properties selected for the case studies were selected to represent the diversity in the Ascentris investment strategy and geographic reach. These properties were not selected for their performance result and do not indicate exclusively in what product type or geography Ascentris may make future investments.