YPI Exits Florida Office Market With $24 Million Disposition Of Southpoint Executive Center
LOS ANGELES, CA (July 5, 2007) Younan Properties, Inc. (YPI) announced today that it has completed its disposition of Southpoint Executive Center, a 137,000-square-foot, institutional quality, Class A office building located at 151 Southhall Lane in Maitland, Florida. With the sale of the four-story property, YPI has made its exit from the Florida office market, as part of its strategic plan to concentrate on building its office portfolio in high-growth markets in Dallas, Houston and Chicago.
Purchased less than two years ago from New York-based Prudential, the sale generated a 34% IRR and 81% gross return to investors. Ronald J. Rogg, senior vice president of CB Richard Ellis' Orlando, Florida office, represented Younan in the transaction. The buyer, a partnership of Stiles Capital Partners, represented itself.
When we purchased Southpoint Executive Center, Florida was one of the top three states in the nation for job growth and unemployment rates. Due to these factors and others, we've seen Florida office market valuations skyrocket in a very short period of time, observed Zaya S. Younan, Chairman and CEO of Younan Properties, Inc. Having delivered significant returns to our investors in just two years of ownership, the timing is right for us to exit the Florida office market. We will be concentrating our efforts and capital in areas where we see tremendous recovery underway that will positively impact current and planned acquisitions in Dallas, Houston and Chicago.
Most recently, Younan Properties took title to two Houston office buildings totaling close to 330,000 square feet of well-located office space: 6464 Savoy, an eight-story, multi-tenant office building in the desirable deed-restricted Regency Square Office Park in southwest Houston, and Northbelt Corporate Center, an institutional-grade, 10-story office property at 2350 North Sam Houston Parkway East. Its current portfolio also includes Norfolk Tower, a 206,680-square-foot office building at 2211 Norfolk Street in Houston. The firm is currently under contract to purchase two additional Houston office properties and plans to acquire some five million square feet in the city in the next six to 12 months.
Younan Properties is now the third-largest owner of Class A office space in Texas, with nearly eight million square feet of prime commercial real estate in the state. In Dallas, it is the top office landlord, with approximately 12% of the city's Class A assets. Nationwide, YPI holdings now total more than 10 million square feet of Class A office space.
In both Houston and Dallas, we see an affordable cost of living, access to a highly educated workforce, decreasing vacancy rates and valuations for existing properties that are still below what the cost for new construction would be, Younan concluded.
Built in 1990, Southpoint Executive Center is currently 93% occupied, up from 85% when YPI purchased it in mid-2005, with noteworthy tenants that include Embarq and Lifestyle Lifts. The Class A property is located within the 180-acre master-planned development Maitland Center, which includes 5.5 million square feet of office space, in the rapidly growing Orlando submarket. Building amenities include an onsite restaurant and gym.
Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $1.5 billion in real estate holdings since its inception in 2002.
About Younan Properties, Inc.
Headquartered in Los Angeles, CA, Younan Properties, Inc., a real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. As one of the fastest growing, privately held real estate investment groups in the country, the company is especially adept at turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan Properties creates immediate value. In fact, the company has delivered to its investors an average leveraged IRR of 65% on properties sold to date.
Since founding the company in 2002, Zaya S. Younan has accumulated a 10 million-square-foot portfolio of well-located Class A office buildings valued at more than $1.5 billion in key markets within Arizona, Florida, Illinois and Texas. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.