Archibald Business Center
The Opportunity: To acquire a joint venture interest in a high-quality building in a key industrial market for a price significantly below replacement cost.
Result: Archibald Business Center was acquired in August 2010 at an acquisition price of $9.5 million. The property was sold in December 2011 at a sales price of $15 million, generating an estimated property-level IRR of 48.3% over a 16-month hold period.
Asset Type: Industrial
Asset Size: 231,444 rsf on 11 acres of land
Year of Construction: 1990
Acquired: 80% joint venture interest in August 2010
Sold: December 2011
- Acquired at a 7.5% initial cap rate
- Class A distribution facility
- The property was 100% leased through December 2011
- Acquired with joint venture partner for $41 per square foot ($9.5 million) in an off-market transaction at approximately 45% of replacement cost
Behringer’s consolidated assets within the industrial portfolio include the Archibald Business Center, Inland Empire Distribution Center, and Interchange Business Center. Combined, they generated a total IRR of 24.5%.