Younan Sells New Park Executive Center for $8 Million Achieving 55% IRR
NEWARK, Calif. November 2, 2004 Younan Properties Inc. (YPI), one of the fastest growing privately held commercial real estate investment firms in the United States, has sold New Park Executive Center a 59,000 SF, Class B office building located at 5900 Mowry School Road in Newark, Calif. Less than 15 months ago, Younan Properties purchased this building from Regis Realty for $5 million.
Utilizing YPI's 6-Sigma process, we were able to increase occupancy from 20% to 75% and reduce operating expenses from $9.10 to $5.35 in the 15 month holding period, said Zaya S. Younan, chairman & CEO of Younan Properties. This disposition is part of our plan to sell our non-core small office properties and replace them with larger Class A buildings in growing metropolitan office submarkets. Currently, we are on track to complete the re-positioning of our portfolio and results have been better than anticipated.
According to Mr. Younan, YPI repositioned this property by implementing an aggressive re-development effort and executed a major leasing program, which has resulted in a more positive image for the building and an increase in tenant occupancy.
The seller, Younan Properties, represented itself. The buyer, Litke Properties, Inc., was represented by Joe Lanyadoo of Union Square Realty and Steve Shain of Arroyo & Coates.