View the latest presentation
Value Creation Through Early Re-Tenanting
USAA and nThrive - PLANO, TX

Background & Challenge:
- Property occupied by nThrive (under a 15-year lease), which had recently completed a merger
- Tenant was consolidating footprint away from the asset while seeking either a sublease of the property or a buyout of its lease with approximately 8.5 years remaining
Resolution:
- Secured 11.6-year, full building lease with USAA
- Rent was approximate 38% higher than what nThrive was paying
- nThrive lease termination payment offset nearly half of TI allowance
Benefits:
- Property re-leased to an investment grade tenant with no downtime and increased rent resulted in substantial value creation
- Validated on subsequent sale – sold for $107 million (5.6% cap rate)
Blend & Extend Creates Long-Term Value
Rockwell Collins Divisional HQ for Simulation and Training Solutions - Sterling, VA

Background & Challenge:
- Acquired in 2014 with 7.8-year lease
- 82,000 square foot office and 96,000 square foot high bay/lab/warehouse space
- Despite being well-located, in 2017 the property was lightly occupied, underutilized and at risk of going vacant
- Tenant sought early renewal: 19% rent reduction, $20 per square foot, TI allowance, 4% leasing commission and 5-year term
Resolution:
- Negotiated and executed a blend and extend: 17% rent reduction, no TI allowance, 2.75% leasing commission for 7-year lease extension
- Subsequently, the tenant exercised its option to expand the building by 29,000 square feet at a total construction cost of $6.2 million (tenant pays annual yield on the construction costs over the lease term)
Benefits:
- Management estimates that two deals increased the value of the asset from $33.8 million to $45.7 million (an increase of approximately 35%)
Value Creation through Property Repositioning
Praxair - The Woodlands, TX

Background & Challenge:
- Property was 100% leased to five tenants at time of acquisition in 2012, but occupancy dropped to 67% by May 2020
- Praxair, whose lease was expiring in 2022, merged with Linde AG and was looking for a North American HQ in the Houston area.
Resolution:
- Secured 11-year lease renewal for 120,000 square feet, in part due to plans to amenitize the property to compete with much of the newer available product in the market
- The renewal will generate approximately $20 million in NOI, which net of approximately $7 million of leasing costs, yields a net effective rent of $10 per square foot.
Benefits:
- Increased occupancy rate to 75% and preserved existing level of NOI
- Generated liquidity and added a long-term, investment grade anchor tenant