Allegiance Realty Corporation

CASE STUDY
ACQUISITION & MANAGEMENT PERFORMANCE

PROPERTY Albuquerque Plaza
Albuquerque (CBD), New Mexico

This mixed-use project encompasses an entire city block with 357,000 sf, including a 22-story office tower, a retail arcade, underground parking facilities, meeting space, and is attached to a 395-room luxury Hyatt Hotel. This asset was acquired in February 2005 from Crescent Resources.

TYPE Class AA Institutional Grade Office Complex
OCCUPANCY 2005: 72.2%  Effective Occupancy at Acquisition
2008:  89.1%  Trending at 100% of Pro Forma
PURCHASE PRICE $37,734,000
CAPITAL RAISE 18% of Total Cost
   65% Individual Investors
   35% Allegiance Employees
TARGET IRR 20%
ASSET MANAGEMENT 2008 Operating Expenses are at levels not seen since
1999, a 4% decrease in Expense costs from time of
acquisition. Annual rebidding of Service Contracts help
to ensure savings in all category.
CURRENT NOI 113% of Pro Forma

PERFORMANCE TO PRO FORMA ANALYSIS
This investment continues to perform at 100% of underwriting while continuing to improve the physical asset and increase the level of property management services to all tenants.

 

Albuquerque Plaza