Cumberland Center II – Atlanta, Georgia
Investment Overview:
Crocker Partners acquired Cumberland Center II (CCII) in September 2006 through an off-market transaction. CCII represented an opportunity to acquire a 406,000-sq.ft. office tower (and two adjacent land parcels) at approximately 50% of replacement cost and capitalize on a recovering submarket that was experiencing significant infrastructure and amenity improvements. The property suffered from significant deferred maintenance and had recently lost its largest tenant, which represented 48% of occupancy.
Value-Add Opportunity:
Resolve all deferred maintenance items, renovate common areas and re-introduce the property to the market through an aggressive marketing campaign, resulting in a stabilized, Class A asset.
Update:
Since acquiring Cumberland Center II we have achieved significant gains in value beyond our initial underwriting projections from our “hands-on” asset management approach. Highlights include:
- Increased occupancy to approximately 80%, leading the submarket in absorption in 2007
- Increased the building’s net rentable area by 4% through a BOMA re-measurement of the property
- Reduced operating expenses by 6% through an aggressive rebidding of all service contracts
- Completed all planned capital improvement projects significantly under budget
- Achieved Energy Star rating and working towards LEED EB certification