GREENSBORO, NC / ACCESSWIRE / March 15, 2021 / A joint venture between Pacer Partners and Drake Real Estate Partners has sold a 1.5 million square foot industrial property in Greensboro, North Carolina to NFI Industries for $74,000,000 and a 5.4% cap rate. The property serves as a bulk distribution center for one of the largest home improvement retailers. The property was previously acquired by the joint venture in March 2019 for $44,750,000 and a 9.0% cap rate from a liquidating trustee.
The property is located at 300 Penry Road in Greensboro, NC.
At the time of the original acquisition, the property was 100% leased to Sears with three years of remaining lease term. Sears had filed Chapter 11 bankruptcy and subleased 100% of the property. Ownership negotiated a tri‐party assignment and assumption of the lease out of bankruptcy and a 10‐year lease extension with the new tenant, oversaw the new tenant's full replacement of the roof, and ultimately sold the property to the new tenant.
"To date, we've completed three dispositions for $123 million versus a cost basis of $82 million. This sale further demonstrates our ability to acquire high-quality real estate at a discount to intrinsic value and to realize that value through active asset management," said Pacer Partners CIO Lior Zamir.
"This investment was a great example of our deep value approach put into action. To start with, you can't go terribly wrong buying industrial for $30 per square foot, and we were able to shake the opportunity loose by quickly deploying our team and resources to underwrite the deal and capitalize on the complexity surrounding the Sears bankruptcy," remarked Jonathan Garonce, partner at Drake.
About Pacer Partners
Pacer Partners is a boutique real estate investment and asset management company with offices in the New York City and Boston areas.
Pacer was founded by Jon Bourbeau, who was formerly one of the top tenant advisors in the country. The firm's executive team has extensive experience across investing, capital markets, leasing, management, and advisory at large institutions.
Pacer pursues thematic real estate investment strategies that provide opportunities to purchase high-quality real estate at a discount to intrinsic value. Pacer employs a value investing philosophy with a rigorous focus on underwriting, due diligence, asset management, and ultimate disposition. Underwriting is based on multiple well‐defined discrete cash flow scenarios.
Pacer seeks to build long‐term partnerships and generate attractive risk‐adjusted returns for its partners, investors, and lenders.
For further information, visit www.pacerpartners.com.
About Drake Real Estate Partners
Founded in 2012, Drake Real Estate Partners is a real estate investment and asset management firm based in New York City. Drake seeks to invest in high-quality, income‐producing real estate assets at a significant discount to replacement cost and drives value by focusing on repositioning, leasing, and improving operations. Drake uses the flexible, long-term nature of its capital to its advantage by seeking out opportunities that have been overlooked by other investors. Drake has completed over $1.5 billion in transactions to date and has invested across a variety of geographies and property types, including multifamily, industrial, office (incl. medical office and creative office), self‐storage, senior housing, retail, and hospitality.
Drake is a proud member of 1% For The Planet, donating 1% of the firm's revenues to not‐for‐profit conservation‐related initiatives in the markets in which it invests.
For further information, visit www.drakerep.com.
CONTACT:
Aaron Nuetzman
Pacer Partners
617‐553‐4475
[email protected]
SOURCE: Pacer Partners