Town Center, Signal Hill, CA

The Signal Hill project is a two-building complex totaling 109,000 square feet that we acquired for $9,305,000, or approximately $85 per square foot. The initial capital invested was $2.8 million. The project was largely overlooked by the investment community as there was an oil well in the parking lot and structural shortfalls from the original construction that required retrofitting.

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WCCP was able to evaluate and mitigate the environmental risk with extensive due diligence,

allowing us to obtain environmental insurance. Our structural engineer designed a fix for the office buildings to maintain the integrity of the project in the event of an earthquake.

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The project was 84% leased at the time of acquisition and additional leases pending elevated the occupancy to almost 95%. The business plan was straightforward: purchase a building with good occupancy and low rents that services the back office needs of tenants with visibility in the class “A” buildings in the area.

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We completed the structural retrofit on budget and cash flowed the asset for the next five years. WCCP sold the project for $17 million in February 2006, providing an excellent IRR and cash multiple to our investors over an extended investment period.