DIG acquired Woodbranch & Wickchester in an off market opportunistic transaction as it continued investment expansion into the Houston Energy Corridor. Expiring rental rates at the time of acquisition were 35% below market. 41% of the property was comprised of 3 large tenants, providing NOI security through 2018-2019 while vacant and renewed spaces could be leased at market rental rates.
DIG implemented a light value-add program at approximately 40% of replacement cost and increased rents to market by taking advantage of the market gap between Class A and Class B rental rates. The Wickchester property was sold separately in October of 2018 to a user and Woodbranch was sold/recapitalized in 2018.