201 Old Country Road
Melville, New York
Pitcairn brought this Class A asset to 100% occupancy in 2002, despite a competitive market experiencing 16% vacancy.
Our largest tenant, the "A" credit rated One Beacon Insurance, agreed to lease our remaining vacant space in 2002 and extend their lease term. This lease capped our effort to reposition the building, which was a vacant, single-tenant property when we acquired it for $92 a square foot in April 1999. Today the asset is worth considerably more, and we expect it to appreciate further as the rent roll continues to grow.
Our pipeline of proprietary deal flow enabled us to "buy this asset right." However, that was only the beginning. We needed to obtain suitable financing, which we achieved when GMAC Commercial Mortgage agreed to provide both equity capital and first mortgage financing. The building's mechanical systems and space plans needed to be redesigned to accommodate multiple tenants. Its appearance and amenities also needed to be enhanced to attract high quality tenants.
Finally, we implemented an aggressive marketing strategy that quickly generated recurring cash flow and set the stage for long-term value appreciation. We are proud of what we accomplished with this asset, and look forward to future repositioning investment opportunities.