INDUSTRIAL

OFFICE

INDUSTRIAL/OFFICE

Dallas, TX

DFW Corporate Park 

211,000 SF

Purchase Date: December 2007 Sale Date: Holding

Results: 
We financed the purchase with a 5 year fixed (pre-payable) loan. Onsite maintenance was eliminated and service contracts were bid out. Operating expenses were reduced by $0.50 per square foot. Occupancy was increased to 87% with rents on new leases $1 - 2 per square foot higher than the previous ownership. We are achieving leveraged returns in excess of 9% and are holding for cash flow. We target disposition in year 5.

Dallas, TX

Interstate 10

80,000 SF


Purchase Date: July 2006

 

 

Results:

To facilitate the sale of the individual freestanding buildings, a commercial condominium was created. The 5 buildings were sold individually, resulting in a return on equity of approximately 150%.

Dallas, Texas

Westway Business Park

354,000 SF
Purchase Date: July 2005
Sale Date: April 2007

Result: 
Within 9 months, we had leased the bulk of the vacancy, actually attracting a 100% office user into the vacant flex building by offering a rental rate far below the office buildings the tenant was considering. Although the tenant improvement costs were substantially higher than budget, so was the rental rate, creating significant value. Additionally, a sharp rise in interest rates meant our fixed financing was materially less than the rates at the time of sale. The project was sold in a package with Valwood.

Dallas, Texas

Vallwood 

353,000 SF
Purchase Date: October 2004
Sale Date: April 2007

Result: 
A drop in cap rates and a rise in interest rates added significant value to the portfolio. The ownership decided to take advantage of the market conditions and sold after 30 months

Dallas, Texas

242,000 SF

Purchase Date: January 2002
Sale Date: June 2003

Result:
Several new leases and renewals were signed within 6 months of taking ownership. Previous ownership refused to make leases with shorter than a three-year term. One 20,000 square foot existing Tenant was planning to leave until we agreed to renew them for 1 year. They eventually signed another 1-year renewal when the first one expired. Maintenance Contracts were put out to bid and costs were significantly reduced. The property was stabilized and sold in approximately 18 months.

Dallas, Texas

Lone Star & Plaza del Sol

186,000 SF
Purchase Date: September 2000
Sale Date: April 2002 & March 2001

 

 

Result: 
Within 6 months of completing the capital repairs, Lone Star was 95% leased. A local investor expressed interest in buying Plaza Del Sol. The project was sold, returning 100% of the equity invested in both buildings. Lone Star was sold in a package with Aero and Corporate in just over in 18 months.

Dallas, Texas

660 N. Central Expressway

81,000 SF

Purchase Date: June 2007

 

 

 

Results: 
Eliminated onsite management, reworked the energy management system, and rebid all service contracts to reduce operating expenses by over $1.00 per square foot. Reconfigure vacancies to facilitate leasing.

Dallas, Texas

Capital Business Park

75,000 SF
Purchase Date: October 1998
Sale Date: June 2001

Result: 
After negotiating a very favorable price, we were able to obtain a loan with a local banking relationship, getting through loan committee in less than 21 days. The property was closed within the 30-day window at an above market cap rate of 9.5%. After one year, the loan was refinanced with another local bank, returning 50% of investor equity. After renewing the largest tenant for an additional 5-year term, the property was sold after a 2 ½ year hold.

Dallas, TX

Parkway Kirby

96,000 SF
Purchase Date: April 1998
Sale Date: Holding

 

 

 

Results:
Consistently high occupancy has provided current returns over 20% in most years. In 2007, the loan became pre-payable, and the partnership refinanced the project.

Phoenix, Arizona

Adobe Point 

30,000 SF
Purchase Date: May 2006
Sale Date: August 2007

 

 

By December 2006, the subprime lenders started to fail. Within 3 months, many tenants had vacated, and the building's occupancy was back to 50%.

Although the partners strongly disagreed with the decision, Urban Capital quickly put the property up for sale. We were able to close in August 2007 at a price resulting in a small loss. In retrospect, the sale was prudent, as the Phoenix market continued to decline.

Dallas, Texas

354,000 SF


Purchase Date: July 2005
Sale Date: April 2007

Result: 
By combining the properties, the lender gained more security on lease rollover. This allowed us to increase leverage and reduce the interest rate over what was originally offered. Within 6 months of purchase, one of the existing tenants in Rockwall expanded into the vacancy. This gave us a 100% leased portfolio with no expiration for 4.5 years and all credit tenants. We were able to sell after 16 months.

Phoenix, Arizona

46,000 SF


Purchase Date: July 2004
Sale Date: October 2005

Result: 
With an acquisition cost of only $53/SF, we had the advantage of an extremely low basis. We sold the project in 15 months, approximately doubling investors equity.

Dallas, Texas

Meridian Service Center

115,000 SF

Purchase Date: October 2001
Sale Date: July 2004

 

Result: 
A call to the tenant's broker revealed the tenant was unhappy about the base year pass-throughs being charged. Because of the length of time Tenant had occupied the property, his base year was over 10 years old. A new lease was negotiated, extending the lease 5 years and increasing the face rate. The property was held for cash flow for almost 3 years and then sold in a package of single-tenant buildings. By combining it in a package with other single-tenant buildings, the individual tenant exposures were mitigated. As a result, a high overall return was achieved.

Dallas, Texas

Aero & Corporate 

175,000 SF

Purchase Date: August 1999
Sale Date: April 2002

Results were immediate as Tenants began renewing at higher rates and many new leases were signed. Several Tenants moved from Corporate to Aero as they expanded. Within a year, the ROI had increased to a point where high leverage debt was obtainable. Two separate 10-year conduit notes were signed, returning approximately 75% of the equity to the investors. Aero and Corporate were then sold in a package with Lone Star Business Park 20 months later.

Dallas, Texas

17000 N. Dallas Parkway

47,000 SF
Purchase Date: June 2007
Sale Date: November 2008

 

 

Results: 
We closed with a low leverage, pre-payable bank loan. Onsite maintenance was eliminated. The building's energy management system was overhauled and service contracts were re-bid. Operating expenses were reduced by over $1.00 per square foot. We increased the occupancy to 90% and sold the asset for a nice gain.

Dallas, TX

Texas Star Business Centre

78,000 SF


Purchase Date: June 2007
 

Sale Date: Holding

Result: 
The Bankruptcy Court was approached about a price deduct due to the dark Tenant. They agreed to a credit of 1-year rent plus anticipated re-letting costs. An environmental consultant was able to get us a closure letter for the environmental issue and thereafter the transaction closed. Within 3 months, the dark space was released at far less cost than the credit received. With professional management, expenses were reduced. New leases and renewals were signed at rates approaching $1.00 more per square foot than the rates in place at the time of purchase. The property has been leased to 89%. It is expected we will sell the project in 2012.

Phoenix, Arizona

61,000 SF


Purchase Date: January 2006
Sale Date: March 2007

 

 

 

Anticipating a softening in the Phoenix market, it was decided to sell the project. It was sold after 15 months, approximately doubling investors equity.

Phoenix, Arizona

7722 East Grey Road

40,000 SF
Purchase Date: December 2004
Sale Date: April 2006

 

 

 

The building was painted and landscaped. Urban Capital was the general contractor for these improvements.

The property was leased up to 50% occupancy and then listed for sale. A local firm purchased the building for its own use.

Dallas, Texas

108,080 SF

Purchase Date: June 2003
Sale Date: July 2004

 

 

 

Both buildings were sold in a package a little over a year after purchase. Even though the leases had not been enhanced, the exit cap rate was much lower than the purchase cap rate, generating a nice return.

Dallas, Texas

Irving Industrial Park

109,000 SF

Purchase Date: September 2001
Sale Date: November 2002

 

Result:
The property was fully leased within 6 months. Further, the printer was renewed early with minimal tenant improvements at a higher rent. The property was sold to an out of state buyer in just over 1 year.

Dallas, Texas

Kingsley Business Center

89,000 SF
Purchase Date: November 1998
Sale Date: October 2002

Income was increased immediately as leases were enforced. Although there was initial Tenant resistance, collections increased significantly. The common areas were measured accurately and as a result, the rentable square footage increased approximately 2,000 square feet over the amount assumed at closing. Lease forms were standardized, and as leases rolled new forms were put in place. The property was sold to an individual after an approximate 4 year hold, generating a nice overall return.

Dallas, Texas

800 Great SW Parkway

18,000 SF
Purchase Date: February 1998
Sale Date: July 2000

 

 

Results:

A perfect first deal, it enabled us to get our partnership documents worked out and systems in order. We were able to sell in month 30 for a nice return. We quickly followed with the acquisition of Kirby 2 months later.