Acquired in February of 2014, the sale has generated a solid risk adjusted return for TCM investors while providing strong cash on cash yields averaging 11.2% during the hold period
CLEVELAND, OHIO, November 20, 2017 – Ten Capital Management (“TCM”), a privately held real estate investment management firm, today announced the sale of its limited partnership interest in Miracle Mile Retail Center in Monroeville, PA, located 13 miles east of the Pittsburgh CBD, to M&J Wilkow, Ltd in a joint venture with ALTO Real Estate Funds. The general partner was an affiliate of Pearson Partners, Inc. The sale generated a 15.8% (gross) / 14.5% (net) IRR with a 1.59x (gross) / 1.53x (net) multiple to TCM investors.
The Property is a 299,894 square foot, Class-A regional power center anchored by national tenants LA Fitness, Marshalls, PNC Bank, DSW, Old Navy and Office Max. Miracle Mile was 94% occupied upon TCM’s acquisition, and was up to 98% upon sale. Tenant sales at acquisition averaged approximately $270 psf and most tenants held their ranking as the number one store in the Pittsburgh Metropolitan Statistical Area (MSA), outperforming competing stores by 30%-50%.Tenant sales and occupancy costs remained strong during the hold period.
Ben Adams, TCM’s CEO, said, “We are pleased with the results of this investment, which was consistent with our approach to buy at a discount to intrinsic value with an appropriate margin of safety.”
Paul DiSandro, TCM’s Portfolio Manager, added, “Miracle Mile is the dominant retail center in the eastern suburbs of Pittsburgh due to its location within the William Penn Highway Retail Corridor. Tenant demand for space was consistently high, resulting in an average occupancy of 98%+ and rent increases averaging over 9% for new and existing tenant renewals over our hold period. We successfully achieved our original business plan which included monitoring and maximizing occupancy, lease roll and tenant quality/health.”
TCM is a privately held real estate firm investing across a broad spectrum of strategies and seeks to deliver consistent, superior risk-adjusted returns to its global investor base, while remaining proactive, adapting quickly to changing market fundamentals and opportunities. TCM makes equity investments between $10 and $25 million, targeting transactions which fall “below the radar” of larger institutional investors. For more information, please go to www.tencapmanagement.com.
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