$12.6 MILLION

CHALLENGE

When the Federal Reserve's aggressive rate cycle pushed borrowing costs sharply higher, the financial engineering that had underpinned officer investors' acquisition thesis came under pressure. Debt service coverage tightened, refinancing windows narrowed, and holding costs began to erode the return profile. A full simultaneous disposition was not feasible for Priam; the assets needed to be unwound in stages, each transaction sequenced to preserve pricing integrity and buyer confidence. Meanwhile, Memphis' overall direct office vacancy held at 18.4% in Q4 2025, and hybrid-work uncertainty had made institutional buyers broadly cautious about suburban office exposure. The question was whether a credible, yield-focused buyer pool could be assembled — and a staged exit executed — before rising carrying costs and lease rollover eroded the portfolio's valuation story.

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ACTION

Priam Properties engaged Landon Williams and his team at Cushman & Wakefield Commercial Advisors to design and execute a phased divestiture strategy across the two assets. The team began with a rigorous asset-by-asset assessment, sequencing dispositions to lead with the strongest income profiles and delay assets requiring repositioning. Rather than concede cap rate expansion as a distress signal, the team reframed elevated yields as a deliberate premium in a supply-constrained market. Outreach was targeted to yield-focused private capital and value-add investors, with timing calibrated to Q4 2025's improving financing environment as the Ten-Year Treasury stabilized around 4.00%.