Case Study

Summary

The Galaxy Office Park is a Class A office complex located in Concord, CA. Constructed by the owner in two phases between 1985-86, the property is comprised of two buildings totaling 173,148 SF of net rentable space. The project consists of steel-frame construction above subterranean parking.

Situation

  • Orchard was retained by the Owner to evaluate the benefits of selling property vis-à-vis a 1031 Exchange.
  • Sought recession resistant property types, including industrial, apartments, self-storage properties.
  • Screened deals for high current return and discount to replacement cost.
  • Sought to reduce management requirement on the part of family.

Results

  • Orchard Partners helped to secure an institutional buyer of the property that generated $42.5 million of re-investment proceeds.
  • Reviewed over 100 separate properties for re-investment.
  • Helped to re-invest proceeds in four separate transactions within required timeline.
  • Exchange helped to diversify family geographically and by product type.
  • Achieved high current cash flow with reduced management intensity.

Overview