New Case Study – Park Plaza Optimized

CASE STUDY: VALUE CREATION & STRATEGIC DISPOSITION – INDIANAPOLIS FLEX PORTFOLIO

Client Objective
Maximize asset value through strategic leasing, operational improvements, & optimal timing of disposition.

Background
This flex industrial portfolio was originally acquired in 2016 by a private ownership group following a disposition of assets in the Indianapolis market. At the time of acquisition, the property was underperforming, with rents averaging $4.00–$5.00 per square foot on a modified gross basis.

After approximately eight years of ownership, the decision was made to transition the asset, creating an opportunity for repositioning and value-enhancement.

Premier Commercial Strategy
Upon engagement, our team executed a focused value-add plan:

  • Repositioned rental rates from $4.00–$5.00 to $8.00–$9.00 per square foot (modified gross)
  • Enhanced tenant mix & lease structures
  • Improved overall asset performance & market perception
  • Prepared the asset for institutional-level interest

First Disposition (2024)

  • Sale Price: $7.5 Million
  • Buyer: Investment Group
  • Outcome: Significant increase in income & valuation driven by improved rent roll & stabilized operations

New Ownership Execution
Following acquisition, the new ownership group implemented an aggressive leasing & revenue strategy:

  • Transitioned rents to $10.00 per square foot (base)
  • Converted leases to Triple Net (NNN) with expenses at $3.48 per square foot
  • Successfully transitioned approximately 50% of tenants to the new structure within one year

Second Disposition (Off-Market Opportunity)
Within a short hold period, an out-of-state investor group approached Premier Commercial regarding acquisition.

  • Sale Price: $10.5 Million
  • Hold Period: ~12–18 months
  • Value Increase: $3.0 Million

Results & Impact

  • Dramatic rent growth: More than doubled from original ownership
  • Operational transformation: Shift from modified gross to NNN structure
  • Accelerated value creation: $3M increase in under two years
  • Successful execution across multiple ownership groups
  • Off-market buyer sourcing through Premier’s network

Why This Matters for Owners
This case study demonstrates Premier Commercial’s ability to:

  • Identify untapped value in underperforming assets
  • Execute strategic leasing initiatives that drive NOI growth
  • Position properties for maximum market exposure—or targeted off-market sales
  • Deliver measurable results across multiple ownership cycles

Looking to Maximize the Value of Your Asset?
Whether you’re considering a sale today or planning for the future, our team can help you unlock hidden value & position your property for optimal returns.

Premier Commercial Real Estate
Proven strategy. Measurable results. Repeat success.