Whitestone Realty Capital is proud of our expertise in bringing about successful JV partnerships for commercial real estate developers.
In a recent transaction, we introduced a West Coast client to an institutional investment firm which resulted in a very successful investment in an office property in Santa Clara. This value-add deal was recently sold, with the investment returning an amazing 311% (that’s not a typo).
From a recent article in the Silicon Valley Business Journal:
“Buildings leased to so-called “credit,” or high-quality, cash-flush tenants have always fetched premiums because the assets are considered safe places to park capital and earn a guaranteed return. But the recent sales show how quickly an investment can appreciate in value after an empty building lands the world’s most valuable corporation as a tenant.
Perhaps the most striking flip is that of 5440 Patrick Henry Drive, a 185,000-square-foot R&D building that Foster Enterprises acquired at the tail end of 2013— when it was vacant — for $19.5 million. It sold to Deutsche Asset & Wealth Management in January of this year, after landing Apple in 2015, for $80.15 million — a 311 percent run-up after about 24 months.”
While such returns are not typical of most commercial real estate transactions, this illustrates how investment firms in partnership with knowledgable developers can reap significant profits.
Whitestone Realty Capital is proud to have introduced the principal to the investor, who continues rely on us for their equity capital requirements.