Investments | Stratton Road Realty

44,000 square foot Office / Medical Building complex
Purchase Price = $10,300,000 ($230 psf)
Purchased property at a significant discount to replacement cost with average rents 30% below market
Implemented multiple value strategies:
- Increased rents to market and targeted medical tenancy, which pay upwards of 10% to 15% premium rents
- Parcellation of the five individual buildings for a potential break up sale at premium pricing to private owner-users
- In discussion with the City to allow 100% Medical use in the project

1,215 hotel keys with a total acquisition cost of $130,000,000
Individually acquired / invested / asset managed thirteen hotels
Located across the United States with various local operators
Diversified risk profile across the portfolio – Stabilized, New Development, and Value-Add / Renovation
Mix demand profile across the portfolio – Corporate, Leisure, Transient, Group, Etc.
The diversified profile of the portfolio has provided stable positive cash flow during shifting market conditions
Exit plan is to sell off and/or re-capitalize individual hotels and monetize profits as the post-pandemic market continues to strengthen

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
Purchase Price = $45,500,000 ($196 psf)
Sold Fitness Club to exchange buyer one month after closing for $9,500,000 ($271 psf)
Re-entitled the vacant office development parcel to accommodate medical use
Increased office occupancy from 90% to 98% within 10 months
Sold office and entitled parcel to an institutional investor for $60,000,000 ($305 psf)
Total Profit of $24,000,000 representing a 38% unleveraged IRR in 21 months

122,000 SF Office Building + 3.72-acre parcel of land
Purchase Price = $22,000,000 ($180 psf)
24 months after acquisition land parcel was sold to residential developer for $12,000,000
Net basis in office building after sale = $10,000,000 ($80 psf)
14 months after office building was sold for $32,000,000 ($262 psf)
Total Profit of $22,000,000 representing a 41% unleveraged IRR in 38 months

Speculative Ground-Up Office Development
235,000 SF Office Building + 4 Story Parking Structure (682 Stalls)
Total Construction Cost = $58,500,0000 ($250 psf)
Presale of property upon completion to one of the largest office owners in the US
Sale Price = $80,000,000 ($340 psf)
Total Profit of $21,500,000 representing a 40% unleveraged IRR in 18 months