RCP Northwest Crossing
RCP Northwest Crossing invested in the acquisition of a Class B flex office building totaling 127,037 square feet located on 6 acres in Dallas, Texas. The property was purchased for $28 per square foot which was about 77% below replacement cost at the time. RCP partnered with a sponsor who had specialized in this type of real estate and in this area of Dallas for twenty years.
The partnership purchased the property from a real estate investment trust (“REIT”) who was motivated to sell because this product type was outside of their core competency. The property was 73% occupied when the partnership acquired the property. The partnership implemented efficient property management and effective leasing tactics to increase the property’s occupancy and operating profit. As a result, the property’s occupancy rate surpassed 90% and the property’s profit margin exceeded 50%.