Built in 1962, 250 East Ponce consists of 9 floors of office space and a 1,150-space parking garage that included air rights zoned for multifamily development. The acquisition strategy was to maximize parking revenue, stabilize the rent roll, and potentially sell off a portion of the parking garage with the corresponding air-rights.
In addition to the above, in-place rental rates were significantly below market at the time of acquisition, and Dilweg intended to roll leases to market rates during the hold period. The entire top floor was vacant at the time of acquisition, providing an opportunity to lease the best space in the building. There was $1.25M of capital improvements needed in the first 2 years of the hold. This renovation included $700k of cosmetic and lobby enhancement and $550 for functional improvements. This renovation was to increase leasing activity in the remaining vacancy as well as with current tenant retention.