PROVEN PERFORMANCE
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Situation
- 77 Sugar Creek (previously named Two Sugar Creek) was viewed as commodity Class Aproduct in Sugar Land.
- At acquisition, the building was 84.5% leased with $16.00 NNN as the highest starting rate achieved at the building.
- A large tenant, totaling 14% of the building, had recently vacated the project.
- The property lacked identity and focus of a proactive leasing and management team.
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Action
- Based on leasing experience in the immediate area, Stream was extremely well versed in the Sugar Land submarket and understood the tenant demand.
- The building went to market and was acquired by Stream in partnership with Velocis.
- The building was repositioned and rebranded to 77 Sugar Creek, giving the building an identity and making it a desirable destination for tenants.
- Installed proactive property management and leasing teams that immediately improved existing and potential tenant relations.
- Implemented a cost-effective marketing campaign to reintroduce 77 Sugar Creek to the market. The campaign included marketing materials, email blasts and broker outreach.
- Marketed cost-effective select improvements in the building lobby and common areas.
Results
- 77 Sugar Creek is now positioned as a desirable Class A office destination in the Sugar Land market.
- Within nine months of acquisition, Stream:
- Increased occupancy from 84.5% to 94.0%
- Executed 24,836 square feet of new deals at an average starting rate of $18.02 NNN
- Executed 4,392 square feet of renewals at an average starting rate of $18.19 NNN
- Increased the value of the building by $46.57 per square foot ($6.7 million)
