About the Author

author photo

Brecht Palombo is an accomplished real estate investment sales broker and auctioneer who is licensed throughout New England. Brecht has been the lead on a number of large Boston area auction transactions and has sold numerous residential developments and multifamily properties. Additionally Brecht is also CCIM candidate and represents Tranzon Auction Properties thoughout Southern New England.

See All Posts by This Author

The Clock is Running on this Opportunity

December 5th, 2007 • Related • Filed Under

Office Park
Tiffany Center I and II is set to close December 19th. If you are interested in this premier property time is limited.

Tiffany Center I and II is located in Kansas City Missouri. Tiffany Center I and II is a 152,509 sq. ft. office building that is 91% occupied. Tiffany sits on 7.81 acres, and offers a first year cash on cash of close to 7.45% with 49% leverage.

The property boasts a tremendous location in the Executive Hills North Office Park near the Kansas City International Airport. The property is a quarter mile off I-29, and three miles from I-435. Tiffany Center consists of a four-story building and a six-story building enhanced with beautiful landscaping, marble lobbies, and a common courtyard. Property amenities include an on-site building manager and engineer.

Tiffany Center is home to several multi-billion dollar companies. The rent roll includes BCD Travel, the third largest corporate travel management company in the world, The University of Phoenix, Forest Pharmaceuticals, and CECO Concrete Construction.

Tiffany Center I and II offers tangible upside potential that is going to be attractive to investors. The CoStar Office Report reported that the avg. rent for office space in the Kansas City market for all classes was $17.31 for the end of the second quarter of 2007, and the avg. rent for class A office space was $21.15 for the end of the first quarter 2007. The current rents in Tiffany Center I and II calculate out to an avg. of $14.89 so there should be some room to increase rents as leases come due. Rents will also be forced up due to some aggressive annual escalations that are written into the existing leases.

Consider this example. If rents are raised to an average of $16.31 in Tiffany (still $1.00 under Kansas City market average) then the CAP rate on the property will move to 13.4%. Obviously this won’t be accomplished overnight, but none the less the upside potential on this building is clear.

For more detailed information on this and other tenant-in-common opportunities enter your name and email below.

Comments are closed.