case1Case History #1

Every building has a story:
Crescent Corporate Center, Anaheim, California

The O’Donnell Group acquired the Crescent Corporate Center, in 1999, and sold off the buildings from 2003 to 2004. The project was comprised of 11 buildings. The O’Donnell Group had the buildings repainted, slurry sealed the parking lots, completely retrofitted the landscaping, and replaced building windows and doors. The buildings were then restructured as separate parcels and sold individually to both professional trade buyers in a 401 exchange, and existing tenants.

The project was akin to buying a pizza for $10 dollars and selling the individual slices for $15. The O’Donnell Group purchased the Crescent Corporate Center for $18.5 million, and sold it for $29.1 million, in 5 years.

The unlevered IRR was 22% and the levered IRR was 42%.

The Crescent Corporate Center brought a $10.6 million total profit.

 

case2Case History #2

Every building has a story:
Cedars Sinai Building,
Torrance, California

The area around Los Angeles is the largest and strongest market for industrial real estate, with a vast population, crowded ports and vibrant retail and manufacturing sectors. In 2000, The O’Donnell Group purchased a warehouse space in Torrance, California for $13.4 million.

The property was leased for six months at the time of purchase, which allowed The O’Donnell Group time to create a plan to bring the building from Class B to Class A standards. Upgrades included painting the interior and exterior of the building, new grading and asphalt in the parking lot, improvements to building entrances and dock space, landscaping around the building and interior enhancements. Altogether, The O’Donnell Group invested $4.4 million on retrofitting the property. The refurbished building met Class A standards, which substantially increased its value. The first year provided a tax deduction, due to depreciation. Although there was a “loss of money,” it was covered by the budget and did not have capital calls.

The O’Donnell Group sold the building in 2003 for $33.9 million, earning a leveraged IRR of 29.2% and an unleveraged IRR of 200.6%.

The Cedars Sinai Building brought a $16.3 million total profit.