7800 Red Road - Suite 310
MIAMI, FL 33143
PHONE: 305-949-0630
JL@MARKETSTREETREP.COM
MIAMI, FL 33143
PHONE: 305-949-0630
JL@MARKETSTREETREP.COM
On September 20, 2013, 121 Champion, LLC acquired 121 Champion Way, an 84,527SF, four story, “Class-A” suburban office building located in the Southpointe Office/Industrial Park in Canonsburg, Pennsylvania. At the time of closing, the building was 100% occupied by four tenants. The investment strategy was to purchase a newly constructed, well-located, stabilized property at an attractive going in yield and hold for the long term.
The property was purchased for $14.5M ($172 psf) with $775k in transaction costs, escrows and working capital. Total project costs are $17.025M ($201 psf) with $6.15M in equity (including an $850,000 capital call in 1Q 2019 and a $900,000 capital call in 4Q 2020) and $10.875M in debt. The debt is a 10-year first mortgage in the form of a CMBS note originated by JP Morgan. Principal payments began in September 2016 and the loan will mature in October 2023.
Leasing & Operations Update
There are three available suites at the property and JLL is actively marketing the three spaces. We are currently in discussion with a potential tenant for the vacant space on the fist floor (7,339 SF). They potentially will take about 5,000 SF of the space with an expansion into the entire space by year three (3). We will keep you updated on any progress.
Financial Update
Referencing the attached income statement, Net Operating Income was $152,213 for Q1 2021 with Net Income Before Depreciation & Amortization of $11,561. Overall, Operating Expenses tracked close to projections, with minor variances due largely to the lower physical occupancy as a result of city-wide mandated COVID-19 safety protocols including increased cleaning at the property. Total revenue was exactly as budgeted for Q1. NOI was 2% below projections for the quarter.
Investment Update