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Case Studies

 

RiversidePlaza Corporate Center5101 Speaker RoadNorthridge Plaza Shopping CenterTechnology Park Business CenterPhoenix Technology Center

Please choose one of the above properties to review details.

1Riverside Business Park

Riverside, Missouri

Block Fund III acquired a six building portfolio in an off-market transaction. Within five months, a surplus building was sold at a 41.32% profit and the sale proceeds were used in a tax deferred 1031 exchange to acquire an additional property for the Block Fund III portfolio.

Opportunity

Riverside

Block Fund Principals learned that the Riverside Business Center, a six building, 249,662 square foot industrial portfolio located in the highly desirable Riverside, Missouri area was coming to market. Due to its excellent location, we knew that there would be fierce competition among prospective buyers in the open market.

Strategy

Leveraging our network of relationships and strong reputation as a cash buyer, we began off-market negotiations with the property owner. We saw an opportunity to acquire the property portfolio at a substantial discount to replacement value.

Challenges

Only five of the six buildings in the sale transaction matched the acquisition criteria of Block Fund III. The owner insisted that all six buildings be sold as a single portfolio. To execute the transaction, Block Fund III would have to acquire and then sell the extraneous building.

Result

Due to our ability to close the transaction quickly, Block Fund III acquired the entire portfolio well below replacement value. A permanent loan was placed on the five buildings the Fund intended to hold in its portfolio. Within five months of closing the transaction, our investment sales team sold the surplus building to an owner/user at a 41.32% profit. The proceeds from this sale were used in the acquisition of an additional Block Fund III portfolio property through a 1031 tax deferred exchange.

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