At acquisition this asset had an attractive combination of substantial lease cash flow with significant upside potential as the rents, at acquisition, were below market. The downtown Knoxville office market was quite healthy, with Class A vacancies less than 10% and rental rates starting to increase. Additionally, a significant amount of Class B and Class C space had been taken off the market and converted to residential uses. The building is located in the heart of downtown Knoxville with close access to all major amenities.
Size: 91,426 RSF
Purchased: August, 2006
Realized: January, 2012
Ownership: Westminster Two Centre LLC, owned 100% Fund VI