Acquired in November 2014 for $9.1M, sale is two years ahead of original business plan and generated net IRR of 28.91% and 1.73x multiple for TCM investors
CLEVELAND, OHIO, January 31, 2017 – Ten Capital Management (“TCM”), a privately held real estate investment management firm, today announced the sale of Wind River Industrial Park for $15.15M. The Property, located in Las Vegas, is in a highly desirable Southwest submarket, within close proximity to the Palms Hotel and one mile from the Las Vegas Strip. The Property was sold to MCA Realty, Inc. two years ahead of TCM’s original business plan and has generated a net IRR of 28.91% and a 1.73x multiple for TCM investors. TCM exceeded original pro forma expectations with the sale, which projected a net IRR of 13.7% and a 1.63x multiple, respectively.
TCM acquired Wind River in November 2014 for $9.1M. At the time of purchase, Property vacancy was only at 74% and lease rates were 36% below market. Low vacancy and lease rates were due to a broken ownership structure that resulted in the improper management of the Property. Since taking ownership, Wind River occupancy increased to 92% and is now leasing at market rents. Ownership also invested over $900,000 in capital improvements.
Ben Adams, TCM’s CEO, said, “We are pleased with the results of this investment, which helps validate our fundamental value-based investment philosophy.”
Paul DiSandro, TCM’s Portfolio Manager, added, “We are pretty conservative underwriters and use our discipline as both buyers and seller to acquire well-positioned assets at a discount to replacement cost, fix whatever is broken through a highly professional approach, and sell once our objectives are met. This was a positive result all around.”
About Ten Capital Management
Founded in 2011 and headquartered in Cleveland, Ohio, Ten Capital Management is a privately held real estate investment management firm investing across a broad spectrum of real estate 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 are too large or complex for small, undercapitalized investors and which fall “below the radar” of larger institutional investors. For more information, please go to www.tencapmanagement.com.
# # #