The Problem
A significant portion of our client’s portfolio was greater than 20 years
old with HVAC systems nearing the end of their useful life. Replacing this equipment
would require a substantial capital investment, making it increasingly more difficult
to meet shareholder expectations.
The Solution
Through MESA, Transcend Equity invested $16 million without using any owner capital,
placing debt on the portfolio or increasing operating expenses. These improvements
comprised more than 3,000 tons of HVAC equipment and lighting and controls improvements
to over 2.1 million square feet.
The Impact
By implementing these improvements through MESA, we reduced our client’s
recurring capital expenditures, increasing Funds Available for Distribution (FAD)
by $10 million. This FAD increase translates into 25 cents per share.
How MESA Works for REITS Let us show you
how MESA can increase your Funds Available for Distribution
(FAD).