PORTFOLIO: FUND I
7,800 sm office building on the Mittlerer Ring in Munich
In December 2010 ASG acquired a 7,800 square meter family owned office building in Munich. ASG acted quickly to meet the seller´s objective of balancing its real estate portfolio by selling this asset. Located at Grünwalderstrasse directly on the Mittlerer Ring, “G1” is a well located, high quality building where ASG’s ‘hands-on’ approach has repositioned the asset.
ASG worked with the existing lender to restructure the existing loan to allow for greater flexibility. ASG´s continued asset management work helped stabilize the building. Shortly after closing, ASG signed two long-term leases with high quality tenants and extended lease terms with existing tenants, bringing occupancy to 86% and WALT to 7.8 years. These efforts immediately doubled the cash flow post debt service since acquisition.
Demand for high quality ‘core’ assets with a strong tenant base and stable rent is high in Germany. As G1 fit into this category, ASG was able to sell the asset to a yield seeking, “core” buyer once the building had been stabilized.