Case Studies
Case Study #1
A high net worth client sought our expertise to diversify their gains from their successful venture capital business into stable retail triple net (NNN) investments. Understanding their unique preferences and risk appetite, we embarked on an extensive search across the national marketplace to identify opportunities that aligned with their desired return threshold and management style.
Given the client's expertise in their primary field, but relative unfamiliarity with investment real estate, we took a hands-on approach in guiding them through the process. After meticulous research, we discovered two promising off-market properties. The first was a drug store, part of a larger institutional portfolio, from which we extracted a specific location tailored to our client's needs.
Additionally, we found another off-market property directly from the developer. This property consisted of multiple freestanding buildings, housing several national chain tenants adjacent to a highly successful regional grocer.
To optimize the financing structure, we worked closely with our client's European lender. Together, we crafted a balance between recourse and non-recourse options while ensuring the risk-adjusted yield met the client's financial objectives.
By strategically pairing the client with these well-suited NNN investment opportunities, we helped them achieve their goal of diversifying their portfolio, ultimately safeguarding and expanding their wealth through the stable and lucrative world of retail real estate.
Case Study #2
The principle of a family office approached us during their efforts to sell a legacy office asset. They had a specific objective - to exchange it for a more desirable triple net (NNN) asset that would align with the financial requirements of their diverse and multi-generational family members.
To fulfill their goals, we embarked on an extensive search of the market to identify opportunities that matched their criteria. Through our extensive network, we were able to secure an off-market project, which showed great promise despite being unfinished at the time.
To make the exchange work seamlessly, we had to address several variables, including coordinating the relocation of existing tenants from the targeted redevelopment property. Our collaborative approach with the client's lender representative resulted in securing a rate lock that ensured the deal's economics remained favorable throughout the process.
Despite the challenges and complexities, we successfully met our client's stringent exchange timeframes, allowing for a successful and timely closing. The client was able to move forward confidently with their strategic plan, exchanging their legacy asset for a promising NNN property that met the diverse financial needs of their family members.
Case Study #1
The next generation of a family-run fast food franchisee was eager to expand their store count, and they saw the opportunity to achieve this through the acquisition of another franchisee. However, to make this happen, they needed assistance with underwriting the assets, securing financing, and navigating the bid process.
We partnered with the client to demonstrate the inherent value of the portfolio and devised a strategic plan to extract this value. Our expertise in this area also extended to consulting with their lender, enlightening them about the real value of the asset and presenting our well-crafted plan to realize this value.
Thanks to our collaboration, our client was able to submit a winning bid with the lender's full support. After successfully executing our plan, our client not only acquired several new locations but also accomplished something remarkable. Through individual sale-leaseback transactions, they not only paid for the acquisition in full but also generated a substantial seven-figure profit. Additionally, they secured a developable site for a future location, setting the stage for further growth and success.
In summary, our strategic guidance and financial expertise enabled our client to seize a golden opportunity, achieve impressive financial gains, and position themselves for a prosperous future.
Case Study #2
A group of highly skilled data scientists, all graduates of Stanford University, developed an ingenious solution to assist retailers with their site selection process. With the support of venture capital, they aimed to expand their platform and make the most of their cutting-edge proprietary technology. Upon careful consideration, they realized that creating and operating a commercial brokerage firm was the most effective way to fully utilize their innovative tools.
Recognizing the complexities of running a commercial real estate firm and the need to adapt their technology to meet the practical requirements of their in-house brokers and clients, both property owners and brands, they sought our expertise. We were engaged to guide them through the challenges of operating a commercial brokerage firm and to collaborate on refining and adapting their technology to address the real-world needs of the industry.
This fruitful exchange of ideas and expertise has been mutually beneficial for both of our firms. By working closely with the data scientists, we have remained at the forefront of technology advancements in the field. In turn, they have gained valuable insights into the traditional methods of commercial real estate, enabling them to fine-tune their product to best align with the practical needs of the industry.
This collaboration has not only strengthened our respective companies but has also resulted in a powerful synergy that enables us to provide innovative and effective solutions to our clients in the ever-evolving landscape of commercial real estate.
The founder of a highly esteemed restaurant chain had ambitious growth plans. To facilitate this expansion, they required an in-house real estate team to scout potential locations, develop an expansion playbook, and execute the expansion strategy. However, once the initial expansion was accomplished, they no longer needed a permanent in-house team.
That's where we stepped in. We became their reliable in-house real estate department, offering the flexibility to scale up operations when required and scale down once the expansion goals were met. Our expertise in this domain meant that we hit the ground running from day one, without any learning curve.
As an independent contractor, we took care of all the burdensome aspects like onboarding, training, payroll, and healthcare. This setup spared them the hassle of dealing with these administrative tasks. When the project was completed, downsizing was no longer a concern since we seamlessly adapted to their needs.
If you're looking to enhance your business with a force multiplier on an as-needed basis, discover how we can be the perfect partner to drive your expansion and real estate endeavors.
A nationally recognized retail chain, listed on the New York Stock Exchange, had ambitious goals of expanding its presence in the competitive California marketplace. To accomplish this, they sought a reliable strategic partner and a well-crafted plan to drive their rapid expansion.
In collaboration with our client, we developed an innovative "hub and spoke" expansion strategy. Over the course of just a few years, we executed this plan with great success. This involved skillfully sourcing ideal locations, adeptly negotiating deals, and ultimately overseeing the successful opening of over 100 new retail outlets. Notably, this achievement was accomplished despite the challenges posed by an extremely high barrier to entry in the California market.
By working closely together and leveraging our expertise, we helped our client achieve their expansion goals swiftly and effectively, solidifying their foothold in a demanding and competitive marketplace.
Case Study #1
A renowned owner of a professional sports franchise made an ambitious move by acquiring several parcels surrounding their arena. Their vision was to create a dynamic multi-use complex, incorporating various buildings for offices, residential spaces, hotels, restaurants, and a food hall. To ensure success in developing the food and beverage aspect of the project, they sought the expertise of Beacon Realty Advisors, renowned for their knowledge in retail spaces.
Understanding the importance of placemaking in this endeavor, Beacon Realty Advisors collaborated with us to further enhance their knowledge and experience. As a team, we closely worked with the ownership group to craft a comprehensive layout, from strategic building placements at a high level to carefully curating the flow and tenant mix within the food hall.
In addition to shaping the physical aspects of the project, we actively participated in underwriting the food and beverage components of the development. By analyzing the financial viability and potential risks, we helped the ownership team make well-informed decisions.
As part of the process, we also facilitated connections with appropriate consultants who could contribute valuable insights and expertise. Furthermore, our outreach efforts to prospective tenants provided the ownership team with a heightened sense of confidence that the market was indeed receptive to their well-designed plan.
By collaborating with Beacon Realty Advisors and our team, the ownership group successfully laid the groundwork for a vibrant and diverse multi-use complex, ensuring that their vision would match market demands and create an enticing destination for all.
Case Study #2
URW, previously known as Westfield, had a vision to acquire a former Sears building adjacent to one of their Southern California mall properties. Their ambitious plan involved demolishing the Sears building and replacing it with an impressive $250 million, three-story structure, encompassing shops, restaurants, and entertainment spaces.
We closely collaborated with URW on the development of the ground floor and front-facing second floor, which would host restaurants and a planned food hall. Our involvement encompassed a wide range of crucial aspects, including layout design, tenant mix, outreach to potential tenants, proforma underwriting, design considerations, marketing strategies, historical references, project viability assessment, leasing processes, and the creation of a vibrant and inviting atmosphere.
At the heart of our expertise lies the trademark "Experiential Real Estate®," which aptly captures our approach to creating engaging and dynamic spaces that go beyond traditional real estate offerings.
URW successfully realized their ambitious vision, transforming the former Sears building into a vibrant, multi-story destination that seamlessly integrates retail, dining, and entertainment experiences, attracting visitors and providing lasting value to the community.
Case Study #1
In collaboration with a lender who had repossessed a property from an insolvent client, we underwrote various options for the lender. These options ranged from redeveloping the property to pursuing an outright sale. Eventually, the lender chose the sale route, and we successfully identified a suitable buyer.
The buyer was keen on acquiring the property but lacked experience in property development. As their trusted advisors, we guided them through the entire remodeling process. This involved crafting a detailed proforma, conducting thorough underwriting for the development, and securing the services of a skilled architect.
Additionally, we skillfully negotiated terms and leases with the tenants, ensuring a harmonious transition for all parties involved. Our dedicated efforts extended to finding a reliable contractor to execute the remodeling project, overseeing the entire development process, and ultimately delivering a fully refurbished and stable asset to our client.
Impressed with our comprehensive approach and exceptional results, our client entrusted us with ongoing property management responsibilities. To this day, we continue to effectively manage the property, ensuring its continued success and providing our client with peace of mind and reliable returns.
Case Study #2
A property owner found themselves with a vacant full-service restaurant building that had become functionally obsolete. Despite its prime location, the building was no longer suitable for its intended use. We took on the challenge and brought the property to market, attracting the interest of a fast food restaurant as a potential occupier. However, a hurdle emerged as the city had imposed a moratorium on fast food restaurants with drive-thrus.
Recognizing that a fast food restaurant with a drive-thru was indeed the highest and best use for the property, and understanding that the existing building was outdated, we decided to engage with the city to reconsider their position. In a series of meetings, we met with the city mayor and individually with each city council member. Our goal was to enlighten them about the current state of the marketplace, demonstrating how the property's transformation would benefit the community.
Our efforts proved successful, and we secured the necessary approvals and entitlements for a fast food restaurant with a drive-thru from the city. With a signed lease in place, we advised our client to demolish the existing building and deliver a pad ready for the fast food restaurant's construction.
Upon completion of the tenant's construction, we skillfully marketed the property for sale. By repositioning the property as a more desirable asset class, we were able to attract buyers at a compressed cap rate, significantly increasing its value. Our successful execution allowed our client to exit their position at the highest possible value, demonstrating our commitment to achieving the best outcomes for our clients.