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Case Study: Topline Building – Bellevue, WA

  • AGM REAL ESTATE
  • Apr 27
  • 1 min read

In 2018, we acquired the Topline Building, a 44,062 SF single-tenant flex property located in Bellevue, WA. Originally positioned as a value-add investment, the asset was successfully stabilized and sold in 2020 during the COVID-19 pandemic. Proceeds were subsequently reinvested into a larger $15 million office acquisition, preserving and enhancing investor capital during an uncertain market period.



INVESTMENT SNAPSHOT


Phase: Realized

Location: Bellevue

Property Type: Flex

Size: 44,062

Acquisition Date: 2018

Purchase Price: 8,500,000

Equity Raised:  $3,100,000

Sale Price:  $11,736,719

Sale Date: 2020

Strategy: Value Add

IRR: 39.34%

Multiple: 1.88

Cash on Cash: 6.48%



INVESTMENT THESIS


Single-Tenant Flex Opportunity: At acquisition, the property provided a stable, creditworthy tenant with below-market lease rates, presenting an opportunity for operational optimization and eventual capital appreciation.


Market Timing and Execution: Despite macroeconomic uncertainty during the COVID-19 pandemic, proactive asset management and a strong local market enabled a successful sale, exceeding initial underwriting expectations.


Strategic Reinvestment: All net equity proceeds were successfully traded into a larger $15 million office building acquisition, preserving 1031 exchange benefits and compounding future growth potential.



RESULTS


Successful Exit: Sold for $11,736,719, delivering a 39.34% internal rate of return (IRR) and a 1.88x equity multiple over a two-year hold period.


Capital Preservation and Growth: The strategic 1031 exchange allowed for continued tax-deferred growth of investor capital into a larger, higher-value asset.


Operational Impact: Asset management initiatives helped maintain full occupancy and strong cash flow during the hold period, supporting consistent distributions and a successful exit.




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