DALLAS, TX (March 7, 2006) During six months of remarkable 2005 year-end activity, Woodland Hills, Calif.-based Younan Properties, Inc. (YPI), posted occupancy increases at five of its Dallas properties acquired in the final quarters of 2005. With the successful renewal of a total of 147,634 square feet and over 62,000 square feet of new leases, the firm increased overall occupancy of its recent acquisitions by 11.6% in office properties along the Central Expressway in less than six months of ownership. The Central Expressway market posted negative absorption for the third and fourth quarters of 2005.
According to 2005 CoStar Realty Information, third and fourth quarter absorption in Dallas' Central Expressway submarket was negative 104,455 square feet.
At Younan Properties' Class A assets, a total of 23 out of 25 renewal opportunities were completed in last year's final quarters more than 95% of the total square footage that came up for renewal. In outpacing the recovering market, Younan Properties, Dallas' second largest landlord, was able to successfully stabilize more than 10% of its recently acquired portfolio with laudable renewal activity.
Our positive leasing score card is a clear message from our tenants that highlights Younan Properties' superior office property management capabilities and practices, said Zaya S. Younan, Chairman & CEO of Younan Properties, Inc. Even in the most challenging of markets, our in-house management teams consistently identifies building upgrades and renovations that make the highest impact on improving tenant satisfaction, resulting in accelerated lease negotiations and increased building occupancies. In addition to increasing the occupancy on this recently acquired portfolio, we were also able to reduce operating expenses as much as 20% in less than six months, said Younan.
I would like to thank everyone in believing in our firm and the positive impact we could have on this large acquisition, especially our lender, Countrywide, Commercial Real Estate Finance, said Younan.
Managed by Larry Blankenship, Younan Properties' Senior Vice President of Asset Management-Texas, Younan Properties' Dallas portfolio includes seven Class A assets. Especially notable were occupancy increases of close to 6% at 9400 Plaza (now 84% occupied), more than 4% at Four Forest (now 81% occupied) and close to 4% at Lakeside Square (now 86% occupied). Increases of more than 1% were recorded at Eighty-Eighty Central (now 87% occupied) and North Central Plaza (now 72% occupied).
Every one of our Dallas assets achieved positive absorption in the first six months of ownership, due to superior management and keen attention to continuous improvement, Blankenship noted. This puts us far ahead of our competition and gives us renewed cause for optimism about the market upswing we identified when these properties were acquired last fall.
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 $800 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 21 Class A office properties totaling more than 4.8 million square feet.