Overview
Transcend Equity provides development and financial services to owners of commercial office properties to enhance yield on their real estate investments.
Problem Encountered
A significant portion of our client’s portfolio was greater than 20 years old with HVAC systems nearing the end of their useful life. Replacing this equipment would require a substantial capital investment, making it increasingly more difficult to meet shareholder expectations.
Our Solution
Through MESA, Transcend Equity invested $16 million without using any owner capital, placing debt on the portfolio or increasing operating expenses. These improvements comprised more than 3,000 tons of HVAC equipment and lighting and controls improvements to over 2.1 million square feet.
Results
By implementing these improvements through MESA, we reduced our client’s recurring capital expenditures, increasing Funds Available for Distribution (FAD) by $10 million. This FAD increase translates into 25 cents per share.
Related Links
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