Surface Parking Lot Portfolio

BOSTON, MASSACHUSETTS

In 2010, LPRI acquired a portfolio of three surface parking lots serving Boston commuters from a local owner-operator who had suffered years of underperformance due to a lack of operational focus and expertise. The three assets were also encumbered by a cross-collateralized commercial mortgage-backed security loan that was in default, despite ample cash flow to make debt service.

LPRI identified and swiftly acted on this unique opportunity to acquire three generational assets in an off-market deal for a price well below replacement value due to the complexity of the situation. After assuming the existing financing and taking control of the portfolio, LPRI implemented a bottom-line-focused business plan that reduced costs, deployed tighter controls, and created greater overall operational efficiency.

As a result, LPRI increased net operating income by more than 90% in just three years and distributed a capital return multiple of more than 3.0x while continuing to distribute cash flow in the form of dividends. Meanwhile, the portfolio has experienced dramatic appreciation in value from a redevelopment perspective — LPRI sold one of the lots to a developer for $11.75 million while continuing to hold the other two.