In early 2009, Perimeter Summit faced significant leasing and operational challenges including several major tenant rollovers (including the lead 150,000 s.f. tenant in one building) and above market operating expenses. GEAM engaged Seven Oaks as asset manager in March 2009, and since taking over the property, Seven Oaks reduced operating expenses by a total of $900,000 per year ($0.65 per square foot), and is in the final stages of negotiating a new 15-year lease for the entire 390,000 s.f. of 3003 Summit with a national credit tenant. Seven Oaks is also assisting GEAM in renegotiating the underlying debt on 3003 and 1001 Summit. Additionally, the large tenant lease will allow SOC to reposition other tenants in 3003 into other buildings in Perimeter Summit.
Since taking over the assignment in March 2009, Seven Oaks will have completed over 500,000 s.f. of lease transactions, thus bringing the entire park to an occupancy level in excess of 90% through the end of the projected real estate downturn.
- Operating Expense Savings: $0.65 per s.f. in first year (7%) through energy-saving programs and personnel right-sizing.
- LEED Certification: In process with expected 2010 completion.
- Aggressive Leasing Strategy: Negotiating above market 15-year lease deal with nationally known credit tenant for entire 390,000 s.f. 3003 Summit.
- Investor Asset Value Protection: New leasing and moving existing tenants to other GEAM buildings will stabilize Park through 2015.