Florida Sponsor Equity Investment

Property Summary

Type: Office, industrial and retail
Size: Individual acquisitions up to $150 million
Location: Florida (primary markets)

Acquisition Summary

Source: Existing relationship,
Investment: $7.9 million
Ownership: Sponsor equity

Transaction Overview

Equity Resource Fund 2013 invested $7.9 million to provide sponsor equity for a Florida-based owner/operator of value-add and distressed office, industrial and retail properties. The sponsor focuses on the largest markets in Florida where they have substantial operating experience and extensive broker relationships. The sponsor targets larger, institutional-quality acquisitions where there is clear upside through repositioning the acquired property via building improvements and aggressive leasing.

Many of their investments have been in high quality properties that were over-leveraged before the Great Recession and are owned by investors that now have little incentive to invest additional capital into the assets. Under its sponsor equity investment, ERI shares in the sponsor’s promote, generating financial leverage without incurring excessive debt financing at the property-level.