University Office Plaza was acquired in 2007 as a value-add investment. The property consists of 184,334 SF of office space across a six-building, 14-acre campus located in Newark, Delaware. At the time of acquisition, the property was only 65% occupied and in need of improvement. GPX designed a $6.1 million dollar capital improvement plan that included new parking lots, energy efficient exterior lights, sidewalks, curbs, updated common areas, an outdoor gazebo and amenity space, and significant HVAC and roof replacements.
GPX worked closely with the State of Delaware to expand their presence as the largest tenant at the property and extend their lease term. At the time of disposition, the State of Delaware occupied 34% of the property. GPX also worked with the Delaware Sustainable Energy Utility to facilitate the conversion of 2,600 indoor light fixtures in the complex to LED, reducing the cost of lighting by 83% annually. GPX obtained a low-cost four-year loan, as well as a grant from the Delaware Efficiency Investment Fund to fund the upgrade without impacting the capital budget.
With over 50 tenants ranging from 138 square feet to 20,319 square feet, GPX actively managed tenant rollover and the leasing process to attain occupancy above 90% and a doubling of operating cash flow from the property over five years. GPX sold the property in 2016 to a private investor.