Portfolio

Investment Highlights

• Acquired asset after several failed auctions and asset was officially taken off the open market; SKB purchased the asset at a 60% discount to original construction cost based in part on SKB’s ability to underwrite excess land on exit
• Award winning corporate campus designed by architect Kevin Roche that included an upscale cafeteria, athletic club including a swimming pool and tennis courts, outdoor amphitheatre, Koi pond and 300 seat auditorium
• Owner-occupant/seller had recently emerged from reorganization occupying only 45% of their corporate campus; surrounding submarket was 4% vacant
• Original strategy was to reposition the asset as a multi-tenant “plug and play” property and lease up vacant space over a projected 13 month strategy, but during the dot.com collapse, occupancies in Scotts Valley and the surrounding areas fell to 60%
• Due to highly desirable nature of the asset, SKB was able to maintain occupancy at about 90% as well as demand LOCs and credit enhancements for all leases
• In 2004, SKB sold the asset
• SKB demonstrated its ability to bring a problem property to a successful outcome in one of the most challenging markets and economies in the last 30 years