Distribution Case Study

CQ acquired this 162,000 SF building, which was vacant, in December 2005 with private equity investors when we astutely realized that we could buy into a strong, stable distribution market at a price below replacement cost. After some facility modifications to allow for multi-tenant occupancy, we marketed the space and secured tenants. Over the next seven years we managed the building, keeping it cash flowing in the recession, and refinanced it without additional investor equity. In 2012 we landed a strong tenant to lease 80% of the space. We took the building to market in 2013, and the subsequent sale resulted with a return to investors of 11.8% annually; a very good return that is all the more remarkable given the economy’s turbulence over the hold period.