CASE STUDIES
INVESTMENT
Value-Add Acquisition
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44,000 square foot Office / Medical Building complex
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Purchase Price = $10,300,000 ($230 psf)
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Purchased property at a significant discount to replacement cost with average rents 30% below market
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Implemented multiple value strategies:
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Increased rents to market and targeted medical tenancy, which pay upwards of 10% to 15% premium rents
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Parcellation of the five individual buildings for a potential break up sale at premium pricing to private owner-users
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In discussion with the City to allow 100% Medical use in the project
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National Hotel Portfolio
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1,215 hotel keys with a total acquisition cost of $130,000,000
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Individually acquired / invested / asset managed thirteen hotels
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Located across the United States with various local operators
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Diversified risk profile across the portfolio – Stabilized, New Development, and Value-Add / Renovation
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Mix demand profile across the portfolio – Corporate, Leisure, Transient, Group, Etc.
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The diversified profile of the portfolio has provided stable positive cash flow during shifting market conditions
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Exit plan is to sell off and/or re-capitalize individual hotels and monetize profits as the post-pandemic market continues to strengthen
Entitlement / Break-up Sale
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Mixed-Use Campus consisting of 196,000 SF ten-story office building, a 35,000 SF Fitness Club, and a 1.2-acre parcel of land
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Purchase Price = $45,500,000 ($196 psf)
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Sold Fitness Club to exchange buyer one month after closing for $9,500,000 ($271 psf)
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Re-entitled the vacant office development parcel to accommodate medical use
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Increased office occupancy from 90% to 98% within 10 months
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Sold office and entitled parcel to an institutional investor for $60,000,000 ($305 psf)
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Total Profit of $24,000,000 representing a 38% unleveraged IRR in 21 months
Value Add Break-up Sale
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122,000 SF Office Building + 3.72-acre parcel of land
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Purchase Price = $22,000,000 ($180 psf)
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24 months after acquisition land parcel was sold to residential developer for $12,000,000
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Net basis in office building after sale = $10,000,000 ($80 psf)
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14 months after office building was sold for $32,000,000 ($262 psf)
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Total Profit of $22,000,000 representing a 41% unleveraged IRR in 38 months
Ground-Up Development
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Speculative Ground-Up Office Development
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235,000 SF Office Building + 4 Story Parking Structure (682 Stalls)
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Total Construction Cost = $58,500,0000 ($250 psf)
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Presale of property upon completion to one of the largest office owners in the US
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Sale Price = $80,000,000 ($340 psf)
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Total Profit of $21,500,000 representing a 40% unleveraged IRR in 18 months