RCP Central Expressway Office
RCP Central Expressway Office invested in the recapitalization of a 224,682 square foot, eight story multi-tenant office building, an adjacent 45,817 square foot, single-tenant office building and 3.2 acres of developable land located in Dallas, Texas. The recapitalization opportunity was available because of a maturing loan which required additional funding coupled with an existing equity partner who needed to liquidate its investment.
Prior to the recapitalization, the property’s leasing activity had suffered because the equity partner and the lender weren’t willing to fund leasing costs. The business plan was to use a newly-funded reserve earmarked for tenant improvements, leasing commissions and capital expenditures to improve the property’s leasing activity and financial performance.
The Partnership’s all-in cost in the property was $68, compared to the average sales price of similar properties, at the time, of $114 per square foot.