In 2006, KCP acquired two office buildings in Jacksonville, Florida called The Quadrant with an outside equity partner. At the time of acquisition, the buildings were approximately 70 percent leased. Following the acquisition, we successfully leased the buildings to 100 percent capacity.
In 2008, the “great recession” hit and our anchor tenant went out of business. We were successfully able to structure a purchase of the mortgage loan at a discount, then refinanced and recapitalized the property. We then fully leased the property and successfully sold it in 2014. Our perseverance through a difficult market cycle turned what could have been a loss into a successful investment.