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Fairbridge Properties of NJ builds momentum for 2016


PRINCETON, NJ — Fairbridge Properties (“Fairbridge”), a privately held real estate investment company, is entering 2016 with significant momentum following a productive year that saw the firm realize strong returns on two asset dispositions, the acquisition of a new cash-flowing, fully-occupied office building and continued success in tenant retention at its properties. In aggregate, Fairbridge sold approximately 300,000 s/f. The company’s October sale of a double-tenanted research and development facility, for a 75% internal rate of return (IRR), came after a period in which Fairbridge completed several initiatives to add value. These included renovations to the building’s parking lot; window, lighting and HVAC upgrades; implementation of a yearly roof-maintenance program; a successful tax appeal; and a comprehensive plan for developing an additional 86,700 feet of build-to-suit R&D space. At the time of sale, the building was occupied by Boston Scientific subsidiary MEDRAD and Honeywell. The second sale, the disposition of a two-story, 38,000 s/f office property in Price, Utah, yielded a 35% internal rate of return (IRR). During Fairbridge’s nearly three years owning the building, which is 100% occupied by government-affiliated tenants, it overhauled landscaping and improved the building’s façade. Most recently, the firm completed the installation of a 21,622 s/f, state-of-the-art, TPO 60 mil roofing system. Fairbridge also implemented the internet-based Angus work order system to increase management efficiency. “At these two assets, we successfully executed business plans to add value by investing in basic infrastructure maintenance and reducing operating costs,” said Dr. Dmitry Gordeev, Fairbridge’s founder and managing partner. “Current research indicates that tenants in the office sector are migrating to higher quality space. Our business strategy of introducing targeted upgrades and managing our buildings effectively were key in renewing and, in some cases, expanding space with credit tenants.” In fact, Fairbridge renewed leases with Computer Science Corporation, MCI Metro and the Utah State Office of Rehabilitation, while two lease expansions in 2015 totaled 22,000 s/f. The company closed on a nearly 12,500 s/f expansion with Lockheed-Martin at Platte Airpark in Colorado Springs, CO, while Fairbridge’s other expansion (an additional 9,768 s/f to Centene) brought Indianapolis’ Landmark Center to full occupancy just weeks after Fairbridge acquired the 12-story, 305,000 s/f office tower in June. “We are thrilled with our portfolio’s 2015 performance,” Dr. Gordeev said. “We continue to methodically execute our approach of finding the right properties in the right markets and doing exactly what’s necessary to generate the returns that our investors expect while delivering the top-notch experience our tenants deserve.” n

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