AW Florida MOB II was a value-add real estate fund formed to deliver superior income and growth returns by acquiring and operating a portfolio of on-campus medical office buildings in the State of Florida.
The Fund acquired eight medical office buildings totaling 638,550 square feet located on five different hospital campuses throughout South Florida. The buildings were poorly leased and managed with significant near-term rollover and below market rents. The buildings also required substantial maintenance and capital improvements. This portfolio was assembled from hospitals which lacked focus and attention to the assets.
AW repositioned the portfolio to a higher asset class with improvements and upgrades to the building exteriors, common areas and select units. AW actively identified and cured operating issues and restored tenant satisfaction at the buildings. AW converted gross leases to NNN, re-branded several buildings and obtained additional sources of revenue through cell towers, signage and parking. AW aggressively marketed the portfolio for lease and drove occupancy from 78% to 92% within thirty months. Stabilized net operating income grew by 21% during the same period. The entire portfolio was eventually sold a publicly traded REIT.