West Park Office I

Altus Properties acquired, repositioned, and harvested an above projected return in the West Park I Office Building, a part of a larger asset disaggregation strategy.    Faced with a complicated and underperforming assortment of buildings, Altus saw an opportunity, crafted a specific strategy, and generated impressive returns.    

	Disaggregation - The West Park portfolio acquisition was full of challenges.   The West Park I Office Building was purchased along with a free standing restaurant and two retail centers.   For many other potential purchasers, the acquisition of multiple product types did not fit their investment objectives cleanly.  In addition, the 98,588 square foot office building featured capital expenditure deficiencies, dated common areas, and significant vacancy.
	As with our other investments, the key to value creation and capital preservation starts with thorough underwriting.  Altus believes that infill locations have enduring value, and generally feature superior occupancy, rental growth, and returns. West Park I Office Building is situated in one of the most desirable and stable submarkets within the St. Louis MSA.
	Altus controlled risk through meticulous due diligence and thorough review and quantification of the capital expenditures necessary to address deficiencies and broaden the asset’s appeal in the marketplace.
	Utilizing its construction management expertise, Altus repositioned the building in the marketplace by making both interior and exterior improvements.  Renovations consisted of remodeling the lobby and common areas along with the building conference and break rooms.   Exterior improvements consisted of overlaying the parking lot, caulking, sealing and repainting the curtain wall, new exterior lighting, and improved landscaping at the main entrance.  Altus implemented operational strategies that allowed us to decrease tenant occupancy costs and increase property cash flow.  New HVAC units, automation, and systems were installed that improved tenant comfort as well as energy efficiency.
	After repositioning, the West Park I Office building was sold at a substantial profit to our investors.   The West Park retail assets,  a part of the disaggregation strategy, continue to be held for investment, generating strong cash flows.

The West Park Office building is an excellent example where Altus saw opportunity where others did not.  We drew from our deep expertise and demonstrated the ability to have a vision, craft a specifically customized strategy, and execute on it.