When Institutional Investors are Wrong
A year ago, APF Properties reached out to 60 institutional investors to partner on buying a 200k SF Class-A office building at 98% occupancy, but none would bite.
APF ended up buying the asset on its own, and this month sold it at a whopping 60% ROI. The institutional stumbling block was the existing long-term mortgage, in place through 2022, APF principal Berndt Perl (right, with fellow principal Kenneth Aschendorf) tells us. The office building, at 2200 West Loop S, is in one of Houston's strongest submarkets and is also positioned for growth, with over 75% of its below-market leases set to expire by the end of 2017.