In March of 2000, ELV acquired a 6-story, 70,000 square foot office and retail building and a 2-story, 7,500 square foot retail building in the waterfront / financial district of Boston, Massachusetts. Unfulfilled permits, deferred maintenance, and discounted in-place rent presented an opportunity to acquire irreplaceable assets at a favorable basis and complete a building improvement and re-leasing program to enhance income and add value.
Within the first 12 months of ownership, ELV completed the politically charged harbor walk and attained the essential state permit for waterfront properties, orchestrated a long overdue structural underpinning of the retail building, and completed various building improvements. We also renewed the two largest leases, representing 70% of the total leaseable area, and improved net income substantially. The property was sold in early 2015, generating a 15% IRR over the holding period.