A renovation and reposition project that included the pursuit, award, and development of McCormick’s Global Headquarters building in Hunt Valley, Maryland. Project size necessitated the acquisition and gut renovation of a former Verizon Headquarters location and central office telephone and fiber switch located on 20 acres in the heart of Hunt Valley. The project was key in maintaining McCormick’s commitment to the state and its 1,200 jobs. Total project equals 360,000 square feet and an investment of $125 million.
CDC is an industrial development project on low basis industrial land acquired from an investment fund in liquidation. The low basis land allowed the venture to construct speculative warehouse facilities at an attractive rental basis for prospective tenants. The project commenced in November 2018 and was fully leased to W.W. Grainger, Inc. in March 2019. The second phase of 235,000 square feet is under construction for delivery in mid-2021. Total project equals 535,000 square feet and an investment of $35 million.
MIG has joint ventured on a multi-phase industrial development project in Ashland, Virginia. Project is set on 70 acres and suitable for 500,000 square feet. The initial 202,500 square foot Phase I is under construction effective fourth quarter 2020. Total project at full build out equals 500,000 square feet and an investment of $38 million.
MIG acquired a 759,000 square foot fully leased bulk warehouse in a North Atlanta submarket in November 2018. The existing credit tenant lease only had two years remaining on the term. MIG was able to renew the tenant for a term of 6 years. Project was acquired for an 8.0% yield on cost. Building is in the process of being sold to an institutional money manager at a 5.8% yield on cost. Total project equals 759,000 square feet and $26 m.
MIG acquired a pre-foreclosure note on the Quarterfield Health Center in February 2019. The project was 100% leased and owned by an entity that was unable to refinance the asset with a hard money lender. The project is in the process of being repositioned, including the investment of approximately $2 million in capital improvements. The acquisition came with a vacant out parcel that is currently being marketed for sale or lease. Total investment of $10 million on 40,000 sf.
MIG acquired North Park in May 2019. The asset was approximately 92% occupied at the time of purchase. The purchase price equated to a 9.0% yield on cost on current income. At the time of acquisition the partnership was able to procure long term 10 year fixed rate debt at 3.75%. During the 24 months post acquisition the asset has received upgrades to the common areas, elevators, parking area and the establishment of a 2,000 square foot conference center for use by the tenant base.
MIG has programmatically and selectively originated 5 credit facilities totaling approximately $20 million for the acquisition of land and building lots throughout the Southeastern United States. The credit facilities are either first mortgages, mezzanine debt or preferred equity. Markets have included the suburbs of Atlanta, Charlotte, and Nashville. It is anticipated that these opportunities will continue to present themselves for the foreseeable future.