POMERADO PROFESSIONAL PLAZA
Milan Capital acquired the property with an occupancy of 55% and the NOI of less than $500K annually.
The Property
Pomerado Professional Plaza located in the city of Poway in north San Diego County presented an investment opportunity for Milan Capital and its partner. After due diligence, Milan Capital acquired this property in 2015 for $9.2 million.
The Opportunity
After acquiring this property Milan Capital and its partner invested about $3.5 million to renovate and refresh the property. The lender provided the financing for a little more than half of the purchase and for all of the new improvements.
The Results
After an investment period of 5 years and committing $3.5 million towards repairs and upgrades the property was sold for over $16.5 million, increasing its occupancy up from 55% to 88%, and the NOI from less than $500,000 annually to over $950,000 at the time of the sale. Since our lender provided the financing for a little more than half of the purchase and for all of the new improvements, our investors were able to slightly better than double their investment in just under 5 years, achieving a 17% annualized return overall.
