Mark draws on his strong transactional experience, market knowledge and management abilities to successfully lease and operate MKD properties.

Mark joined MKD in February 2021 where he oversees leasing, property management and construction projects for the MKD Portfolio.

Prior to joining MKD, Mark was a Managing Director for 16 years in Newmark’s Marin County office completing leasing and investment sales transactions in the local and regional market and has won numerous Power Broker and related performance awards. Some notable transactions include fully leasing the Hamilton Landing project in Novato as well as selling 5 office and industrial buildings to Marin County.

Prior to Newmark, Mark worked in marketing roles with both Cushman and Wakefield and Colliers International.

A native South African, Mark served as a Company Commander in an elite unit in the South African army before receiving a Bachelor of Arts degree in social sciences and law from the University of Cape Town, South Africa. He further advanced coursework at UC Berkeley in computer network administration and construction management.

Mark has also held leadership positions in several community organizations including Board Chair of the San Rafael Chamber of Commerce, President of Marin Highlanders Rugby Club, Chairman of the Marin Cricket Club and Treasurer of the Belden Club.

Email: [email protected]

KABUKI CENTER, SAN FRANCISCO, CA

Posted: August 6, 2024

In May 2011, MKD acquired the iconic AMC Kabuki Cinema Complex at 1881 Post Street in San Francisco. Situated at the corner of Post and Fillmore Streets, within the historic Japan Center, the property encompasses a condominium interest across two parcels totaling 27,102 SF, boasting 80,000 SF of gross square footage with 59,462 SF leasable area.

Property Overview and Acquisition Strategy

Acquired for $12,250,000 through a 1031 Exchange, the property's purchase price reflected a valuation just over $200 per leasable SF. The complex, renowned for housing the AMC Kabuki Cinema and the esteemed Kabuki Hot Springs Spa, holds a pivotal position within the vibrant Japan Center—a five-acre enclave featuring hotels, shops, restaurants, and cultural attractions. One of our principals grew up nearby and recognized the property’s long term redevelopment potential.

Key Transaction Highlights

At the time of acquisition, buyer interest was limited despite the historical significance of the property, due to its tenant mix and the physical complexity of the property. The property included ownership of air rights over a public garage and shared infrastructure with the adjacent mall complex.
MKD leveraged longstanding relationships with the Spa operator and a relationship with a broker, who had access to a significant theatre operator, facilitating a strategic underwriting of leases crucial to the property's viability.

Financial and Operational Success

MKD saw this debt as an opportunity as it was negatively impacting competing buyer interest.
To enhance cash flow, MKD successfully refinanced at a lower constant rate of 5.9%. This move not only improved cash flow but also allowed for the recapture of 70% of the original equity invested by increasing the size of the loan. Additionally, identifying and enhancing alternative revenue streams—such as cell tower income—further bolstered financial performance, adding $200,000-$250,000 of annual income. From 2020 through mid-2024, the property generated over 2.5 times the equity in the investment, just through cash flow.

Navigating Challenges and Planning for the Future

Despite facing significant challenges during the pandemic, including operational disruptions for the cinema and spa, MKD Properties demonstrated resilience by providing crucial support to tenants and fostering a path towards their recovery. Looking ahead, MKD Properties is actively collaborating with the community, neighboring property owners and the City of San Francisco to develop a forward-thinking redevelopment plan for Japan Center, positioning it as a prime redevelopment opportunity on the West Coast.

NORTHPOINT COMMERCE CENTER, SANTA ROSA, CA

Posted: August 6, 2024

In September 2016, MKD acquired Northpoint Commerce Center, located in West Santa Rosa. This 85,000 square-foot, six-building office and light industrial (flex) property was purchased for $7.4 million, or $87 per square foot. At the time of acquisition, the property was 74% leased and had struggled with occupancy for years. MKD was drawn to this acquisition due to its low price per foot relative to comparable sales and its upside potential through lease-up and hands-on management. For instance, MKD had looked at a similar property in the market being sold at $120 per square foot. Additionally, the seller, an active player in the Bay Area, had a reputation for being difficult and inflexible in leasing the property. MKD believed that with some aesthetic improvements and an aggressive leasing effort, occupancy and rental rates could be significantly increased.

Acquisition and Financing

Initial Improvements and Leasing Strategy

Soon after acquiring the property, MKD participated in a Request for Proposal (RFP) for a State of California lease and successfully secured a new eight-year lease. Simultaneously, MKD extended an adjacent State lease, providing long-term stability to the property and allowing MKD to be more aggressive on rents for new leases and renewals.
MKD undertook several aesthetic improvements, including painting the property and installing new awnings and signage, which greatly enhanced its curb appeal. These improvements, combined with an aggressive leasing strategy, led to Northpoint Commerce Center reaching 100% occupancy within a few years.
Since 2018, the property has maintained an average occupancy of 97.3%, while releasing or renewing spaces as rents and the quality of tenancy were increased.

Financial Performance

Project Success

The successful lease-up and hands-on management approach have transformed Northpoint Commerce Center from an underperforming property to a thriving investment. MKD's strategic improvements and proactive leasing efforts have not only stabilized the property but also significantly increased its value and income potential.
MKD's investment in Northpoint Commerce Center demonstrates the value of identifying underperforming properties with upside potential and applying a strategic, hands-on approach to unlock that value.

PATTERSON PASS, LIVERMORE, CA

Posted: August 6, 2024

In June 2014, MKD closed a unique off-market investment opportunity, enabled by a strong broker relationship, by acquiring 181,554 SF property on Patterson Pass Road in Livermore, California, on 9.05 acres for $14,524,000 ($80.00 per SF). This property, a traditional two-building concrete tilt-up structure with 309 parking spaces, had been converted into a destination recreational facility at a time when demand from traditional warehouse users was soft and was 85% leased to three tenants. A competing LOI was being negotiated with a syndicator principal but MKD quickly convinced the seller that we were a better buyer with a trade requirement and no need to raise additional equity.

Property Overview and Acquisition Strategy

Located at 6474 and 6538 Patterson Pass Road, the property featured extensive dock high and grade level doors, making it ideal for ultimately repurposing it back into warehouse space. The acquisition was financed through a new loan of $9,500,000 and fulfilled a 1031 exchange requirement, enabling the strategic tax advantages of the transaction.
The acquisition process was characterized by MKD's proactive approach, leveraging a strong broker relationship to secure a competitive advantage over other potential buyers. Challenges discovered during due diligence—including rent arrears from the anchor tenant and an illegal sublease arrangement—provided an opportunity to acquire the property at attractive pricing that was well below replacement cost.

Value Creation through Strategic Leasing and Management

MKD's immediate focus was to optimize occupancy and stabilize tenant relations by identifying and rectifying tenant issues, including negotiating with the anchor tenant, who was behind on rent, illegally subleasing part of its space, and close to being evicted by the seller, and by controlling high weekend parking demand equitably.
MKD entered into a direct lease with the subtenant – an indoor basketball and volleyball operator – and replaced the sublandlord with an indoor soccer operator.

During Due Diligence MKD found a new tenant - an indoor family center – who subsequently expanded into a space leased by a tenant that was struggling, taking the property to 100% occupancy through Close of Escrow in May, 2018, generating exceptional cash flow distributions.
MKD showed its hands-on operational strength by negotiating or restructuring leases with 4 tenants to create an economically and operationally viable destination recreational facility.

Project Success and Exit Strategy

With the property fully leased and operational efficiencies achieved, MKD had created substantial value within a four-year hold period. The decision to sell in May 2018, was prompted by management intensiveness and an unsolicited offer, and proved lucrative. The property was sold for $21,700,000, reflecting a sales price of $120.00 per SF and yielding a remarkable 2.7 multiplier return on a $5,000,000 initial equity investment over the four-year hold period.

CORPORATE PLACE, HAYWARD, CA

Posted: August 6, 2024

In May, 2007, MKD acquired 3190 Corporate Place, a 83,189 square foot food processing facility. The property, located in a prime industrial area, was part of a company acquisition by Columbus Salami, a company owned by three original Italian families. As part of its expansion strategy, Columbus had recently partnered with a private equity group to bolster its operations and fuel growth. To retain capital for further initiatives, Columbus and its new private equity partners decided to sell the facility but remain on site through a ten-year leaseback agreement. Columbus had retained a broker introduced to the families by MKD and desired a quick transaction. Columbus had clear parameters for the sale and invited MKD, as well as their primary lender, GE, to submit proposals for this unique sale-leaseback opportunity.

Transaction Highlights

Despite the similarity of the proposals, MKD was selected as the winning bidder due to our longstanding relationship with the original owners and the direct communication channel that o:ered. The transaction, finalized on May 25, 2007, traded for B6,150,000.
The deal involved not only the existing 83,189 square foot facility but also a 76,850 square foot vacant lot adjacent to the property. The lot was leased back to Columbus with an option to purchase, preserving its potential for future expansion. While the initial return on this investment was relatively low due to the importance to Columbus of keeping rent below-market, MKD prioritized the strategic aspects of the deal over immediate financial returns.

Expansion and Development

As Columbus grew under new private equity ownership, the need for additional space became evident. In 2014, the company, now led by a new CEO, focused on expanding product lines, approached MKD to act as the developer and owner for an extension of the facility. The expansion would use the adjacent vacant lot, allowing Columbus to scale operations seamlessly.
MKD’s in-house partner, with extensive experience in “dirtup” construction, played a crucial role as the owner’s representative for this project. The expansion was envisioned as a high-end robotic food processing and curing facility. MKD appointed its own general contractor for the site development, infrastructure, foundation, shell, and miscellaneous development work.
Columbus selected their own construction firm to manage the interior improvements, the cost of which was much greater than MKD’s investment including the costs above.
This collaboration resulted in a successful 54,399 square foot expansion, completed on June 12, 2015.
The rent for the new space was calculated based on the total project costs, and the lease was extended by 15 years with multiple renewal options. A regional bank, with whom MKD enjoyed a strong relationship, provided a construction loan that later converted into a permanent loan, ensuring smooth financial operations for the project

Further Expansion

The success of the 2015 expansion led Columbus to request a maximization of the site’s potential. This final phase, managed and completed entirely by Columbus’s contractor with oversight from MKD’s in-house partner, was delivered on September 22, 2017, adding another 10,940 square feet to the facility. The completion of this phase marked the full utilization of the available land, solidifying the facility’s capacity to support Columbus’s continued growth. Columbus has since become a part of the Hormel family of companies.

Financial Performance and Project Success

MKD’s initial equity investment in the project was B2,475,067. Remarkably, no additional equity has been injected since the original investment. Today, the property generates in excess of B1,500,000 in annual cash flow. Over the years, the property has undergone several refinancings, with the most recent being a ten-year loan at a favorable three percent interest rate secured in 2021.
Although the property has not been sold, indicating that no Internal Rate of Return (IRR) or equity multiplier can be calculated, conservative estimates suggest that the equity multiplier would exceed ten times. This significant return on investment underscores the project’s success.

Clay is highly experienced in completing major acquisitions, forming joint ventures and enjoys strong institutional relationships.

Clay joined MKD in January 2024 after 25 years in institutional real estate including 16 years at PNC Realty Investors (“PRI”) which managed a $6 billion+ Taft Hartley Core Fund.

Clay started in the DC office for PRI in a Transactions role and relocated to SF in 2015 where he led the Transactions Team for 7 years and then served as President/Portfolio Manager prior to the Fund being sold in 2023.

Prior experience including working at Clarion Partners DC office for 8 years in various acquisitions and asset management roles. Clay’s transaction experience is extensive both nationally and regionally and has included dozens of existing and development transactions in all major product types.

Some notable development projects that Clay has worked on include Wolf Point (Chicago-office and residential), 3303 Water Street/22 West (DC-condo), NY Times Tower (NYC-office) and Cadence/Centerra (SSF&SJ-residential).

Clay received his BA from UC Berkeley and Masters in Urban Planning from the University of Virginia where he also worked as a graduate intern (the first in a 25-year+ program) for the UVA Real Estate Foundation.

Email: [email protected]

Bill harnesses his development and entitlement experience, legal expertise and underwriting skills in due diligence and investor relations roles at MKD.

Bill formed PB&J (MKD Partners forerunner) with Pat Flanagan in 2012 and has more than 30 years’ experience in acquisitions, operations, and development, for both publicly traded and private real estate companies with total transactions in excess of one billion dollars.

Bill’s experience includes directing acquisition and development for a large publicly listed real estate investment trust and privately held regional companies as well as serving directly as the project sponsor with equity investment partners.

At PB&J, and acting in a principal capacity, Bill and Pat have acquired 9 different properties (office, industrial and storage) in partnership with both institutional and HNW investors.

Prior to PB&J, Bill acted as a principal and undertook several Northern California real estate opportunities including the redevelopment and disposition of the 700,000 sq. ft. Eastmont Town Center.

Previous experience includes working at Prentiss Properties REIT, as acquisitions and development director for Prentiss on the West Coast where he directed investment in core urban and suburban markets.

Bill has his undergraduate and law degree from UCLA, and received an MBA from UC Berkeley.

Darla’s expertise in executive functions, capital markets finance, and property performance, optimization, is a key part of MKD’s success.

Prior to establishing and Founding MKD Investments in 2005, Darla was a founding partner of Fowler Flanagan Partners, which acquired more than 200 residential and commercial real estate assets on behalf of real estate investors mainly via syndications on both a national and regional basis. She was the operating partner and managed underwriting, financing, partnership reporting and internal operations, as well as asset management.

Prior to forming FFP (and its predecessor entity), Darla served as a Managing Director of JMB Institutional Realty Corporation, where she was employed for 11 years and was responsible for the acquisition over $2 billion in residential and commercial real estate assets, including joint ventures, development projects and real estate companies in the Northwestern U.S.

Darla’s skill set includes executive functions and property performance optimization. She brings a wealth of experience in the debt and equity markets as well as acquisition administration and partnership reporting to MKD’s operations and transactions.

Darla has been involved in several real estate associations and charitable boards, including the Board of Directors of Catellus Development Corporation, a publicly traded NYSE listed company. She served in this role as an advisor (while with JMB Realty Corporation) to the California Public Retirement System on its $550 million investment in the Company.

Darla received a BS in Business Administration from Oklahoma State University and an MBA from the Harvard Graduate School of Business Administration and is a Certified Public Accountant.

Pat leverages his strong transactional experience and deep relationships with owners and brokers to source opportunities and raise capital for MKD.

Pat started his real estate career as an investment specialist at Cushman & Wakefield in 1979 and quickly became one of their top investment specialists nationally contributing in over a billion dollars of transactions covering industrial, retail, office, multi-family, and land assets.

During that timeframe, Pat (who also served as its first President) and several other like-minded real estate professionals founded the Belden Club, a networking organization for young real estate professionals that continues to be active and counts an illustrious group of real estate leaders in its alumni.

In 1990, he became COO of Iliff Thorn where he oversaw the day-to-day operations of a regional brokerage company consisting of nine offices; and ultimately oversaw the sale of the company to Colliers MaCaulay Nicholls in 1996. He returned to investment sales at Colliers in 1996, teaming up with George Eckard to become one of the premier investment teams on the West Coast before they returned to Cushman & Wakefield.

In 2003, Pat left brokerage and teamed up with Matt Moran and Michael Joseph to form FJM Investments to acquire real estate. Their first transaction was the largest industrial transaction to exchange hands in the Sacramento market at that time. In 2005, Pat moved on to start MKD Investments with Darla, a family office real estate investment platform, where they have been investing since that time.

In 2012, recognizing an opportunity to acquire quality real estate assets at the bottom of the market, Pat founded PB&J to leverage the fallout of the 2008 recession. Pat received his undergraduate degree from UC Davis and an MBA from UC Berkeley.

730 S Orange Ave, West Covina, CA

Posted: May 13, 2024

West Covina Center is a 122,756 rsf Shopping Center located along I-10 in West Covina, California. It is anchored by Floor & Décor who occupies 83% of the Center under a 15-year lease. The acquisition was for a leasehold interest that had 15 years remaining on the lease with no additional extension options. Prior to a full renovation for Floor & Décor in 2021 the building was home to Sears, Roebuck & Co. since the 1960’s. The leasehold was acquired for $7,060,000 ($57/rsf) in December of 2021.

Transaction Highlights

The leasehold was acquired from a large institution that bought a package of centers and did not want to hold the leasehold interest long term.
The principals of MKD and the seller knew each other very well which made the transaction proceed despite several diligence items that were unknown to both parties and a foreign individual that owned the fee to the land that did not move expeditiously.
Leaseholds, especially with a short remaining duration, are difficult to sell and can experience a small pool of buyers for the asset.

The key to this transaction was creative financing. Loans for short term ground leases are difficult to obtain. MKD went to its list of closest lenders and received an excellent loan option based on the stability of Floor & Décor as the anchor and the credibility and balance sheet of MKD’s principals.
MKD closed a loan that was a fully amortizing over 15 years at 75% of the purchase price. The amortization timeline matched the remaining term of the ground lease.
The equity invested by MKD has already been fully returned through cash flow and the property continues a 35% annual cash on cash return.

21-23 Pimentel Ct., Novato

Posted: May 13, 2024

21-23 Pimentel Court is a two-building industrial, property totaling 56,938 rsf, located in Novato, California. Each building was leased to a separate tenant, with 21 Pimentel leased to Biomarin Pharmaceutical with five years of lease term remaining and 23 Pimentel leased to Prima Fleur Botanicals with two years of term remaining. 21-23 Pimentel was one of the highest quality industrial properties in the small Marin County market with rare clear height and dock-high loading. We purchased the property in 2015 for $10,750,000 ($192/sf).

Background

Biomarin and its rival Ultragenyx were both expanding rapidly in the small Bel Marin Keys enclave, putting pressure on rents and values in the submarket.
Biomarin had invested heavily in improvements to create a mission-critical materials storage warehouse. The lease contained a restoration clause which we felt effectively bound Biomarin to the building.
Months before its scheduled lease expiration we discovered that Prima Fleur was in negotiations to lease a larger space nearby. We secured a lease with a rapidly growing greentech company, Apparent, to back-fill 23 Pimentel with no downtime.
With no downtime and minimal below-the-line costs through the hold period, the investment generated strong cash flow throughout the hold period.
Biomarin was approached to exercise its lease extension option and responded with conditions including lower rent and a removal of its restoration obligation.

Project Success

Negotiations were contentious but ownership recognized we were negotiating from a position of strength (restoration clause) and held firm. Biomarin’s broker indicated that Biomarin would be willing to purchase the property for up to $300/sf. Ultimately, with lease negotiations stalling, we accepted an offer at $330/sf with an all-cash close.
The equity proceeds represented a 3.5X multiple of invested equity when including cash flow distributions realized during the 5-year hold period.

Hopper Industrial, Santa Rosa

Posted: May 13, 2024

Hopper Storage and Industrial Park is a 14-building, 203,000 rsf commercial property located in Santa Rosa, California. It is a unique property that was a private airport in the 1950’s and 1960’s. It hosts a combination of uses including, self-storage, small warehouse and large industrial users. At acquisition it was well leased at 95% occupancy but the average rental rate was around 60% of market with many of the tenants on short leases or month to month. The property was acquired in July of 2022 for $24,100,000 ($119 rsf).

Transaction Highlights

The property was acquired in a unique way. MKD aligned itself with a tenant that had a purchase option on one building and was able to buy the entire property through the option with the tenant as one of the limited partners.
The two largest industrial tenants, including the partner that possessed the option were renewed. The small industrial tenants were moved from month to month leases to term leases and had their rents increased on average 40%.
The management and leasing of the self-storage component of the property is performed by Cubix, a large NorCal-based storage company whose owner is well known to MKD’s principals.
Cubix has built needed tools and a web presence to manage revenue and bring legacy rents to market levels.

Project Success

An 11,150 rsf stand-alone industrial building was structurally and cosmetically renovated. Additionally, an old wine production use was reinstituted for the asset. It will be marketed in the spring 2024.
In order to command the highest potential sales pricing, MKD is working through a parcelization for some of the industrial buildings to sell them separately and generate optimal returns.
Appraised value by 3rd party at acquisition was 35% higher than the purchase price.

Sequoia Court, Petaluma

Posted: May 13, 2024

Sequoia Court is a 3-building office/industrial flex development in Petaluma, California, totaling 87,831 rsf. The property was acquired from a family that decided to sell its real estate and was represented by a brokerage team very well known to MKD. The property was acquired in June of 2011 for $5,090,000 ($58 rsf). The property was 60% leased at acquisition and the 3 largest tenants had less than 2 years of term remaining.

Transaction Highlights

We worked quickly to extend the leases for tenants with expiring terms and were able to retain all 3 major tenants; Broadcom, Computer Associates and Eurofins Scientific.
The cost to parcelize the buildings was too great due to City infrastructure requirements, so instead we revived an old condominium map to provide for flexible exits of individual buildings.
We repaired and replaced roofs and HVAC equipment, corrected other deferred maintenance and painted the building to prepare for sale.

Project Success

Each building was sold separately. The first went to a local investor. The second went to the tenant/user and the third went to an investment fund.
Sales were completed by July 2016 and by the time of the final sale, the property had been leased to 100%.
Total proceeds from the sales were $11,328,000 ($129 rsf) This delivered a 220% return on equity over a 4-year hold period.

770 L Street, Sacramento

Posted: May 13, 2024

770 L Street is a 169,078 rsf, 13-story office tower located one block from the Golden One Arena in downtown Sacramento, California. The property was acquired in July of 2013 for $29,400,000 ($173/rsf) and was 65% leased at acquisition. The Seller had recently done extensive capital repairs to the major systems and the building, which was originally built in 1984, had been fully renovated in 2005.

Transaction Highlights

We partnered with an international separate account manager. An acquisition loan and supplement debt funding for tenant improvements and commissions was secured from Bank of America.
We worked with the anchor tenant, California High Speed Rail, to bring their outside consulting firms to the building and lease up vacant space.
Recognized the value of the fiber network running under the building and secured long term renewals from Telco companies with infrastructure in the building.
Benefited from the rumored location of the Kings new arena, which was one block away. The Arena development reenergized the area.

Project Success

At time of sale, the building was 98% leased. The anchor tenant was renewed and expanded by 15,000 rsf. Several engineering firms that work with the anchor tenant signed leases as well.
We leveraged off of the new arena and increased parking revenue by 20% due to special event sales.
By hiring and overseeing the property manager and asset manager directly and outsourcing engineering, we reduced operating expenses and increased service levels.
The building sold for $44,500,000 in February of 2018 ($263/rsf). The combined cash distributions and net proceeds from sale provided investors with a 190% return on equity in 4.25 years. Debt represented 40% of the capital stack.

Santa Rosa Press Democrat, Rohnert Park

Posted: May 13, 2024

The Press Democrat was a 73,000 rsf industrial building sitting on an underdeveloped 12.7-acre parcel of land in Rohnert Park, California. The property, was purchased for $9,500,000 in September of 2016 as a covered land play. It was acquired with the assistance of local brokers in a non-marketed sale lease back transaction.

Transaction Highlights

The Press Democrat newspaper was enduring difficult times for print media. Their advisors recommending selling assets and we were able to acquire their printing building and lease it back to them for 10 years.
The industrial market was starting to heat up and developable industrial sites in Sonoma County were scarce.
We followed our initial strategy and parcelized the site into 3 lots in order to sell the existing building with Press Democrat as the tenant and entitle the other two parcels for industrial building developments.
We were concerned about the long-term viability of a print media company so we wanted to execute on the sale of their building at an early stage.

Project Success

The Press Democrat building was sold in May of 2018 for $8,630,000. This left us owning the remaining 7.5 acres of land free and clear with a basis under $1 million ($2.66 per land sf).
Upon receiving entitlements and design approval for the development of the parcels, we received tenant interest but were offered an excellent price by a national developer for one of the parcels. Rather than taking the development risk we sold that parcel for $3,070,000 in May of 2020.
One year later, we sold the last parcel for $2,600,000 to a trucking company who was to build a truck service center at $17.36 per land sf.
Total proceeds from the sales was $14,300,000 and investors received 175% of their equity of a 5-year period. Investors were offered the opportunity to re-invest in a 1031 exchange after the sale of the last parcel.

Petaluma Valley Portfolio

Posted: May 13, 2024

The Petaluma Valley Portfolio consisted of 14 separate office, industrial, medical and retail properties totaling 840,637 rsf, located in Petaluma and Rohnert Park, California. The Portfolio was 70% leased at acquisition in 2012 including leases with several high quality, institutional credit tenants. Most of the portfolio was built in 1997 or later and represented the best located, most attractive space in the market. We purchased the Portfolio for $65,000,000 ($77 rsf) which was about a third of replacement cost

Transaction Highlights

Seller wanted a quick and quiet sale process and the opportunity was exposed to a very small group of investors. One of the major competitors was excluded.
Working with an international investment manager, we identified 65% acquisition financing along with a reserve for tenant improvements and commissions at a time when reasonable financing was not readily available.
Substantial vacancy existed in the market due to the 2008-09 real estate recession and to complicate leasing, the prior owner had a stigma of being very difficult.
We immediately started an aggressive marketing plan (broker open houses /incentives to make sure we saw every possible transaction.

Project Success

During the 3-year holding period, the project was leased to 92%.
Early strategic sales of the retail and medical buildings proved to be effective and one industrial building was sold at an elevated price to a local investor with a trade requirement.
The remaining 11 assets were marketed together in 2015. On the eve of closing, the buyer requested a multi million-dollar discount. We anticipated this and provided vendor reports addressing almost every concern. They accepted a $200,000 price reduction (less than 10% of their discount request).
The total portfolio sold for $96,000,000 ($114 rsf) which was a 190% return on equity over a 3-year hold period.

Portfolio

Southern California