Bamboo Equity Partners™ purchased the property in an off-market transaction in May of 2019. The property had been vacant for nine years, and was in disarray with broken windows, a leaking roof, interior mold and asbestos problems. We realized the need for outdoor parking and storage in a tight industrial submarket and demolished two-thirds of the building to redevelop the property. The remaining 25,000+ square-foot space was completely updated to a modern office warehouse and flex property with a three-acre parking lot in front of the building. During construction, the expanded outdoor parking space attracted Carvana Co. and Amazon.com, Inc. Carvana utilized both the building and secured parking for a regional distribution hub, while Amazon used the space to park their fleet of sprinter vans for quick delivery out of their adjacent distribution center.
With two credit tenant leases in place, we took the property to market and sold to a large institutional fund in May of 2021 to achieve a 67% IRR for investors in just three years. Throughout operations, we also paid a 9% annual preferred return on equity.
Occupancy at Acquisition: 0%; Occupancy at Disposition: 100%
Acquisition Price: $1,500,000.00; Disposition Price: $5,000,000.00