240,000 SF OFFICE BUILDING, TRENTON NEW JERSEY
If there ever was a case of turning lead to gold, this deal was it. We were visiting the Governor at the State House inTrenton. While driving out of town we saw an old Holliday Inn in an advanced state of disrepair, across the street from the State House and the State Department of Education. It looked like this fruit was overly ripe for picking. Subsequently we met with the owner of building, who was trying heroically to keep the hotel alive. He had insufficient capital to make necessary repairs and upgrades and occupancy rates were abominable. We paid a couple of million dollars to acquire the building and then proceeded to pre-lease the entire building to the Department of Education on a long term net lease. We then obtained EDA tax free mortgage debt sufficient to do a total renovation of the property. All in cost was about $9,000,000 and the capitalized value of the newly renovated and leased building was about $20,000,000.
Look not only at what is, but also at what can be.