Kennedy Investments is pleased to announce the sale of “NFLA Office,” a suburban office building purchased in May of this year by by KI Florida Fund I and NFLA Investors, LLC.
This former Class A, 28K sq. ft. single-tenant office building (depicted above soon after its construction in the mid-90’s) was in need of major repairs after being vacant for several years following the recession.
In May of 2018, Kennedy Investments acquired this property from the lender on behalf of KI Florida Fund I and NFLA Investors for a purchase price of $1.25M (please see our earlier announcement on the acquisition).
The initial investment plan called for a seven figure, 12-month renovation to the property which included mold and asbestos remediation, a new roof, new HVAC systems, new skylights and numerous other improvements.
During the renovation, the property was being marketed for sale or lease upon completion. This summer, Bleakley, Bavol & Denman, a growing commercial litigation firm with nearby offices, approached Kennedy Investments about purchasing NFLA Office for their new corporate headquarters and assuming completion of the renovation project.
In late September, Kennedy Investments closed on the sale of this property for a total of $2,367,155 including purchase price & reimbursements.
Although the original pro forma called for completing the renovation and selling or leasing NFLA Office within two years with a projected IRR of 12 to 22%, this early exit exceeded investment lifecycle and return projections, returning more than 150% of the invested capital to NFLA Office, LLC after just four months.
Kennedy Investments is continuing to pursue value-added commercial real estate investments in Florida. Accredited investors are encouraged to contact us for more information about participating in future investments by clicking here.
