P. O. Box 190452
Atlanta, GA 31119
Purchased a 127,391 SF multi-tenant, small bay industrial building on Pleasantdale Road in NE Atlanta, fronting I-85. This investment is under the Brownfields' Program administered by the State of Georgia EPD. At the time of acquisition, the property, which comprises two buildings, was 100% leased. The project is leased at below market rates to a tenant-mix that provides opportunity for improvement.
|DATE OF PURCHASE:||Dec. 19, 2017|
SWIFT STRAW HOLDINGS
Purchased a 12.18% interest in the holding company that owns Swift Straw, the leading supplier of pine straw to retailers in the United States. The purchase was to assist in the funding of an acquisition of a competitor as well as working capital to fund continuing market-leading innovations, including an operation that delivers pine straw in a wrapped plastic bag container. In connection with a later funding round for the company, we sold the substantial majority of our position retaining only a small percentage interest. The retained interest in Swift Straw is in addition to a small percentage ownership in a software company that was spun-off previously.
|DATE OF PURCHASE:||July 22, 2016|
|CAPITAL ACCOUNT OF RETAINED INTERESTS:||$644,500|
|IRR TO INVESTORS (to date):||20%|
Purchased a 130,738 SF industrial building in Conyers, Ga that was vacant at the time of acquisition. The building was purchased with the intent of leasing it to a movie and/or TV production company, though the building will retain its functionality for traditional light manufacturing and warehouse distribution users. In May,2017 the building was leased to a subsidiary production company of Warner Brothers. This investment was purchased in partnership with Raulet Properties.
|DATE OF PURCHASE:||April 11, 2016|
From the same seller of the McDonough Industrial deal identified below, we purchased 4 separate small tracts (excluding #3 in the picture below which was included in the McDonough Industrial purchase) aggregating 13 acres. All tracts were undeveloped at the time of purchase although one is leased to a trucking company for trailer storage. Subsequent to our purchase we successfully renegotiated the land lease tripling the monthly income. With this lease in place, this specific parcel was sold in March of 2017 for $212,500.
|DATE OF PURCHASE:||September 16, 2015|
|SOLD TRACT 5:||March 2017|
This 157,000 SF building was empty at the time of purchase in 2015. Included with the purchase was a 2.8-acre undeveloped parcel immediately adjacent (#3 in the photo for McDonough Land above). Once acquired, we initiated certain cosmetic upgrades such as painting, repairing truck doors, and landscaping as well as the creation of a new entrance along with the "white box" of the office space. The building was sold in March, 2018, retaining the vacant 2.8-acre parcel for later sale.
|DATE OF PURCHASE:||August 7, 2015|
|IRR TO INVESTOR (to date):||8.5%|
Our first acquisition outside of the greater Atlanta MSA was in Nashville, TN. Nashville was attractive due to its outstanding economic growth story, diversified economy and recovering real estate fundamentals. The bay sizes in these buildings vary from 900 SF to 30,000 SF, with one building solely occupied at 48,000 SF. The properties were 100% leased at time of purchase. Typically, our acquisitions have vacancy (sometimes significant) that provide the opportunity for value creation on lease-up. Here, our belief was that the majority of the leases were signed during the depth of the 2008 - 2011 downturn and provided opportunity for material increases in rate upon lease renewal or rollover. Based upon a belief in the continued recovery in the Nashville industrial market, the strategy is to renew tenants at higher rates and manage for cash flow. Since acquisition, we have increased rents an average approximating 30%. The Bakertown property was refinanced in July, 2018 returning 85% of investor's original capital.
|DATE OF PURCHASE:||September 2013|
|REMAINING EQUITY (post-refi):||$337,500|
I85 SHOWROOM PORTFOLIO
This 156,000 SF, 5 building portfolio was purchased from Highwoods Realty Trust in April, 2013. At the time of acquisition, the property was 84% leased and occupied, but many of the tenants were on discounted, month to month leases. The purchase price was discounted to reflect the uncertain tenancy. The investment strategy was to sell two of the individual buildings to users and lease up the more marketable buildings for later sale. The two buildings targeted for sale were closed in 2014. This sale was followed up with the sale of the By Design Showroom in 2015, the sale of the By Design Clearance Center in early 2016 and the sale of the final building in October, 2016.
|DATE OF PURCHASE:||April 2013|
|AGGREGATE SALE PRICE:||$7,740,943|
|IRR TO INVESTORS:||27%|
WESTLAKE OFFICE PARK
Purchased in December of 2012, this two-building, single-story office complex comprising 67,000 SF was purchased in a broker assisted auction from a special servicer that had taken title via foreclosure. The property was 88% leased at acquisition with 25% of the project subject to lease termination at the end of 2013. As the property was in excellent physical condition, efforts focused on stabilizing the tenancy. By early 2015 we had renewed or signed new leases with 4 of the five tenants in the property achieving 100% occupancy. Soon after we offered the property for sale. A sale was accomplished in December, 2015.
|DATE OF PURCHASE:||December 2012|
|IRR TO INVESTORS:||21.44%|
ROSWELL BUSINESS CENTER - BUILDING 700
In December of 2012, we added to the Roswell Business Center portfolio with the acquisition of the seventh and final building comprising 40,000 SF. This building is a two-story class A office building that was 50% leased at time of purchase. A lobby renovation was completed as well as cosmetic improvements. This property was acquired in connection with a recapitalization of the entire portfolio. This building, along with buildings 100 - 600 of the original Roswell Business Center purchase, were sold in March of 2016.
|DATE OF PURCHASE:||December 2012|
ROSWELL BUSINESS CENTER
This acquisition of a 156,298 SF flex, office park closed in March, 2011. The properties were acquired from the special servicer of a CMBS trust which had foreclosed a year earlier. At the time of closing, the property was 46% occupied and was priced to provide a 7% cash on cash return on leases in place. Significant near term improvements were completed including new roofs on several of the buildings, re-landscaping and signage and major parking lot repairs. After a five-year holding period, we had improved occupancy to 80% at which time, upon receipt of an unsolicited offer we sold the entire investment.
|DATE OF PURCHASE:||March 2011|
|IRR TO INVESTORS:||16.57%|
WINN WAY MEDICAL OFFICE
465 Winn Way is a two-story multi-tenant medical office building located across the street from DeKalb Medical Center in Decatur, Georgia. The property was purchased in December of 2010 and was 75% leased at the time of acquisition. This property was purchased from Health Care REIT and was priced to provide a 10% cash flow yield on leases in place. The building was leased to 100% occupancy and sold in mid-2013 to a separate national health care REIT.
|DATE OF PURCHASE:||December 2010|
|IRR TO INVESTORS:||43.4%|
HERITAGE PARK OFFCE BUILDING
This two-story, Williamsburg style office building was purchased in May, 2010. Located at the intersection of two, well-known surface streets in Buckhead, it is leased to medical and dental practices as well as houses a local Caldwell Banker realtor office. Leased at 88% at the time of occupancy, it was priced to produce a 10.5% cash on cash return on leases in place. This property was sold in June, 2014 to a local investor.
|DATE OF PURCHASE:||May 2010|
|IRR TO INVESTORS:||31.82%|
1998 DELK INDUSTRIAL
This single tenant office-warehouse-showroom property was acquired from the owner in a sale leaseback transaction in February, 2010. The seller, Patio Enclosures, was a national manufacturer and installer of patio enclosures for residential applications and was suffering along with the collapse in the national residential real estate market. The deal was structured based upon the assumption that the company would vacate in six months. Though the company stayed in the property longer, it did ultimately declare bankruptcy and we re-leased the property to a craft brewer. In December of 2014 we sold the building to the tenant.
|DATE OF PURCHASE:||February 2010|
|IRR TO INVESTORS:||14.62%|
BOBCAT RETAIL PORTFOLIO
Acquired three retail/service locations net leased to Bobcat for five years. The locations are in Marietta, Norcross, and Gainesville and represent three of the four locations in the metro area. The transaction was structured with a five-year fixed rate loan. These assets were managed for current cash flow and long-term appreciation. Upon the expiration of the original five-year lease to Bobcat, one of the buildings at the Norcross location was leased to another company as well as the Gainesville location. The locations renewed by Bobcat were sold to an affiliate of the tenant in September, 2015. The final buildings were sold to their users.
|DATE OF PURCHASE:||April, 2008|
|SALE OF TWO LOCATIONS:||September 2015|
|SALE OF GAINESVILLE:||September 2017|
|SALE OF NORCROSS:||February 2018|
|AGGREGATE SALE PRICE:||$4,295,000|
|IRR TO INVESTORS:||10.35%|
303 RESEARCH DRIVE
303 Research Drive is a two-story multi-tenant office building located in Technology Park in Norcross, Georgia. The property was purchased in February of 2008 and was 15% leased at the time of acquisition to two tenants. Due to the low occupancy, the acquisition was not syndicated and was held as a direct investment of the sponsors. After acquisition the property underwent a cosmetic upgrade with significant landscaping improvements, painting, signage and parking lot repair and resurface. The property was leased to 80% occupancy and sold to a private investor. Though the sale price exceeded the purchase price, the sale resulted in a small loss due to a longer than expected holding period.
|DATE OF PURCHASE:||February 2008|
3725 ZIP INDUSTRIAL BOULEVARD
3725 Zip Industrial Boulevard is a single-tenant warehouse property located in the airport submarket of Atlanta. It is leased to Atlanta Aviation through 2014 at a rate that is below market. The property was purchased at an attractive $20 PSF and contains an adjoining two-acre paved lot which has been leased separately from the building. The investment partnership that purchased this building also purchased 3851 Lakefield Drive. The adjoining parking lot was sold separately in April, 2015, followed by the sale of the remaining building in April, 2016.
|DATE OF PURCHASE:||November 2007|
|SALE (LAND):||April 14, 2015|
|SALE PRICE (LAND):||$320,000|
|SALE (BUILDING):||April 12,2016|
|SALE PRICE (BUILDING):||$1,099,000|
3851 LAKEFIELD DRIVE
This single building industrial property was acquired in September, 2007. The building had been vacant since the early part of the year and was in need of significant cosmetic improvements. The building comprises 60,000 SF with about 5,000 SF built out as office space. Post-acquisition, approximately $225,000 was invested in improvements including minor roof work, painting, re-landscaping and re-finishing the concrete floors in the warehouse. The investment partnership that purchased this property also purchased 3725 Zip Industrial Boulevard. The property was leased in September of 2010 and sold to the tenant in May of 2011. Though the sale price exceeded the purchase price, the sale resulted in a loss to investors due to the carrying costs involved with a longer than expected holding period.
|DATE OF PURCHASE:||September, 2007|
|IRR TO INVESTORS:||-13.25%|
COMMERCE BUSINESS PARK
Commerce Business Park comprises 68,491 SF in two buildings. It is a multi-tenant industrial property located off of two major commuter roads and convenient to I-75. The property had suffered from inattentive management and was less than 50% leased at the time of acquisition. Post-acquisition, we invested $55,000 in painting and landscaping improvements. Additionally, we leased 40,500 SF, bringing occupancy to 100%. The property was refinanced in July, 2006 with a non-recourse loan fixed for 10 years at a rate of 5.88%. Though this property was intended to be held for long term appreciation, the robust market for commercial properties in 2007 warranted offering the property for sale. A sale of the property was closed in early May after a holding period of only 18 months.
|DATE OF PURCHASE:||December 2005|
|DATE OF SALE:||May 2007|
|IRR TO INVESTORS:||36.4%|
LAVISTA INDUSTRIAL PARK
This three-building, multi-tenant industrial property comprises 216,310 square feet and was part of a three-property package purchased from Highwoods Property Trust. This property was originally purchased with a strategy of a long-term hold. However, we sold this asset on the same date of our acquisition to a third party achieving a sizeable profit for our investors.
|DATE OF PURCHASE:||June 2005|
|DATE OF SALE:||June 2005|
KENNESTONE CORPORATE CENTER
This five-building, single story office complex comprises 82,633 square feet and was part of a three property package purchased from Highwoods Property Trust. This property was poorly leased at acquisition, with only 66% of the space permanently occupied by tenants. Since acquisition, we renewed 16,147 SF and leased 25,825 SF, bringing total occupancy to 97%. The property was refinanced in June, 2006 returning all equity to the investors and capitalizing the company with new leasing capital. Responding to the aggressiveness of buyers, the property was marketed for sale in 2007. The sale of the property was closed in July, 2007.
|DATE OF PURCHASE:||June 2005|
|DATE OF REFINANCE:||June 2006|
|NEW DEBT AMOUNT:||$5,200,000|
|DATE OF SALE:||July 31, 2007|
This 61,860 square foot property was part of a three property package purchased from Highwoods Property Trust. This asset is located in a rapidly evolving area within the city limits of Atlanta. Once home to industrial buildings for light manufacturing, warehouse and distribution uses, it has seen a several-year resurgence and transformation to residential, retail showroom and office. Since acquisition, we have invested $60,000 in landscaping and cosmetic improvements providing the property with an updated look and better visibility. At the time of closing, the property was 35% vacant, with another 40% coming up for renewal in 12 months. The property is now 100% leased. The asset was recapitalized with long term debt in June of 2006.
|DATE OF PURCHASE:||June 2005|
|DATE OF REFINANCE:||June 2006|
|NEW DEBT AMOUNT:||$2,100,000|
INTERCHANGE BUSINESS CENTER
This asset consists of a multi-tenant, industrial building totaling 97,108 square feet with 11 tenants. Though the asset was subject to significant rollover over the first two years of ownership, it had an established roster of tenants and was well located in the Doraville submarket of NE Atlanta. It was acquired with the strategy of retaining its tenants and methodically increasing rents to provide steady and increasing cash on cash return to the investors. Post-acquisition, six tenants comprising 52,605 SF had been renewed and four new tenants comprising 31,266 SF were added. The property's occupancy was increased to 93%. The original projected holding period for this asset was 10 years. In late 2007, it was decided to market the property for sale to take advantage of a selling window that we feared was soon to close. The property was sold in January of 2008.
|DATE OF PURCHASE:||August, 2004|
|DATE OF REFINANCE:||June, 2006|
|NEW DEBT AMOUNT:||$5,200,000|
|DATE OF SALE:||January 31, 2008|
PINE STREET COMPLEXThis asset consists of three industrial buildings totaling 60,000 square feet with 8 tenants. This was older industrial product with significant short term lease rollover (70%). Our investment strategy was to renovate the buildings (paint, new overhead and entrance doors, new signage, etc.) and stabilize the tenant base. We felt there also may be opportunities to sell individual buildings to users. The largest building, 30,000 square feet, was vacated in June 2002 and released to a user in July 2002 who purchased all three buildings in May of 2003.
|DATE OF PURCHASE:||March 2001|
|DATE OF REFINANCE:||May 2003|
|IRR (PROPERTY LEVEL):||30%|
610 WATERFRONT DRIVE
This asset consists of a 75,000 square foot single tenant industrial building located in the Fulton Industrial District. Our strategy was to purchase the building, which was in very poor condition, make the necessary improvements and either lease or sell the building to a user. We spent $355,000 on building improvements, including a new roof, interior lighting, dock doors, parking lot and office renovation. We put the building under contract to a user and structured the closing to occur 1 year and a day after our purchase to realize long term capital gain treatment.
|DATE OF PURCHASE:||April 2003|
|IRR (PROPERTY LEVEL):||149%|
NORTH DECATUR POINTE
This asset consists of two multi-tenant industrial buildings in the Decatur market totaling 36,000 square feet with 9 tenants. Our investment strategy was to buy the buildings, make deferred maintenance repairs, including a new roof, and grow the rent base over time. We felt there was an opportunity in 2003 to renovate the buildings and significantly increase cash flow with higher quality tenants. The buildings were refinanced in April 2003, pulling out $170,000 of which $70,000 was returned to the investors and $100,000 was spent on a complete exterior renovation of both buildings. A 16,000 SF building was sold in December, 2007 for $1,225,000. We anticipate that the remaining building will be a long term hold.
|DATE OF PURCHASE:||March 2000|
This asset consists of nine single tenant industrial buildings ranging in size from 4,000 square feet up to 42,000 square feet. The buildings were 100% leased at the time of purchase and our strategy was to grow rates over time and potentially sell individual buildings to users and investors. We have sold five of the buildings and increased rents by an average of 18% on lease renewals and re-tenanting of vacant buildings as leases expire.
|DATE OF PURCHASE:||March 2002|
NORCROSS BUSINESS PARK
This asset consists of two multi-tenant flex buildings totaling 78,839 square feet located in Norcross, GA. The buildings were 95% leased at the time of purchase but in need of major deferred maintenance. Our strategy was to purchase the buildings, make the necessary improvements including new roofs, landscaping and parking lot repairs and increase the occupancy and rental rates. We leased the vacancy and extended two other tenants then sold both buildings to a contiguous owner who occupied a portion of both buildings.
|DATE OF PURCHASE:||August 2002|
|DATE OF SALE:||October 2003|
|IRR (PROPERTY LEVEL):||80%|
2935 NORTH DECATUR ROAD
This asset consists of a 92,294 square foot multi-tenant industrial building with 4 tenants, located next to our North Decatur Pointe project in Decatur. The building was formerly the Munford Distribution Center that was converted to a multi-tenant facility by the previous owner. Our investment strategy was to operate the building as an industrial property for the short term and potentially convert it to a quasi-retail building in 3 to 5 years. One of the existing tenants purchased the property.
|DATE OF PURCHASE:||October 2000|
|DATE OF SALE:||March 2005|
|IRR (PROPERTY LEVEL):||23%|
279 OTTLEY DRIVE
This asset consisted of a single tenant 48,000 square foot industrial building located in the Armour/Ottley Industrial District and leased to Beverly Hall Interiors on a 10 year lease term. Our investment strategy was to hold the building for the firm lease term, which provided a 13% return on equity for 5 years increasing to a 15% return for 5 years and re-evaluate the use of the building at the lease expiration. The Armour/Ottley area is transforming from a distribution market to a quasi-retail/showroom market and we believed there would be a higher and better use for the property. We were approached by an investor with a 1031 tax free exchange in July of 2003 and sold the building in January of 2004.
|DATE OF PURCHASE:||October 1998|
|DATE OF SALE:||January 2004|
|IRR (PROPERTY LEVEL):||18%|