Industrial Matchmaker - Finding the Right Fit - Value-Add

Challenge

A returning investor, who had previously enjoyed exceptional and expedited returns with our team, found themselves in a remarkable position within a year of their last venture. The investor had garnered significant interest from multiple potential partners seeking to join their next enterprise, necessitating the identification of an investment property that met demand and fulfilled the requirements of these new investors.

Preferring to maintain a local presence for effective property management and daily operations oversight, they aspired to diversify their portfolio beyond office products. While open to exploring various property types, they sought a higher internal rate of return than what the local retail market could offer.

Action

Once again, this investment group entrusted Jordan Wood, Taylor Tucker, and Chase Tucker to identify a suitable property that aligned with their own and their investors’ requirements. Leveraging their local expertise, the trio uncovered an intriguing opportunity—a property that was under contract, with the seller seeking to divest a portion to generate capital for additional market offerings. With the invaluable guidance of Jordan, Taylor, and Chase, the investment group secured control over a segment of this industrial complex. Conducting an extensive analysis, Jordan and Taylor meticulously crafted a step-by-step roadmap, ensuring the fulfillment of the General Partners’ preferred returns and satisfying the demands of the Limited Partners. The nearly simultaneous closing proved mutually beneficial, providing the seller with much-needed capital while granting the investment group possession of the property they sought.

Result

The successful completion of the transaction yielded significant capital for the seller, empowering them to continue constructing flexible warehouse spaces. Simultaneously, the investment group, acting as the buyers, achieved a milestone by acquiring three fully occupied triple net lease (NNN) properties and securing just over 8 acres of development land with prime highway frontage. This diversified industrial portfolio delivered superior returns compared to other market offerings, offering the stability of long-term, reliable tenants.

Jordan collaborated closely with the buyers’ lender, ensuring a seamless closing process, executed with precision and punctuality. Currently, the investment group is in the planning phase of constructing mini-storage facilities on the remaining acreage, capitalizing on the high demand and limited supply for this coveted location. The investors express satisfaction with the initial returns from this transaction and eagerly anticipate the successful completion of their expansion endeavors.

Testimonial

Once more, Jordan, Taylor, and Chase have demonstrated their exceptional capabilities. They diligently unearthed an off-market opportunity that perfectly aligned with our preferred acquisition criteria, satisfying every requirement we had. This project holds immense promise for us, as it not only allows for portfolio diversification but also grants us an opportunity to venture into the realm of development. The unparalleled level of communication, coupled with their unwavering attention to detail, sets these three apart from the rest. 

-SH/DL-

Jordan

For More Information, contact:

Jordan Wood, CCIM
Investment Specialist
jordan.wood@cbclubbock.com
(806) 317-4666