Huntington Point is a two-building, 28,650 square foot office park on a 1.7 acre site with 99 parking spaces located in Shelton, Connecticut.  The property was bought from a private owner in August 2000 for $3.3 million.  Total project cost was $3.7 million.  It was sold in February 2004 for $4.6 million.

.Market Opportunity
At purchase, the property was fully leased.  However, one lease was about to expire and 74 % of the remaining leases were to roll during the next three years.  The common areas were sterile and leases were short and below market, as a result of the prior owner’s unwillingness to invest in common area and tenant improvements.

.Acquisition
CCGL’s predecessor company identified an opportunity to upgrade the buildings and tenancy and increase the rent roll without substantial risk or investment.  The property was acquired in August 2000 at the attractive price of $115 per square foot.

.Results
Under management by CCGL’s predecessor company, common areas were upgraded, turnkey buildouts were completed for new tenants and the buildings remained fully occupied.  Lease terms were extended from three to five years and NOI was grown by nearly 25 %.  The property was refinanced with a long-term permanent mortgage which generated significant excess proceeds.  It was sold for $4.6 million in February 2004. 

CREF I owned a 73% interest in the property.  The remaining 27 % was owned by Mark Ellman, since CREF I did not have sufficient capital available to complete the acquisition on its own.  The effective annual internal rate of return to the CREF I investors was 19.2%, net after all fees and carried interest to CCGL and its affiliates.