Case Studies

Boulders Office Park

Boulders Office Park is a class A office park located in Chesterfield County, in the suburbs of Richmond, Virginia. SugarOak, on behalf of a number of tenant in common investors, purchased three office buildings totaling approximately 280,000 square feet in May 2002 and an additional two buildings totaling approximately 225,000 square feet in June 2003. All five building were relatively new, well-leased and well-maintained class A office ​buildings.

Union Land & Management (Union)

In 1997, SugarOak took over management of Union's portfolio of investments. At that time, Union’s portfolio consisted of 280,000 square feet of office space and vacant land with a total combined net equity value of approximately $18 million.

Coastal American Corporation (Coastal)

When SugarOak took over management of Coastal's portfolio in 1997, it consisted of two hotels, two trailer parks, a trailer rental business and vacant industrial land. There were over 100 employees on Coastal’s payroll.

Sunflower Resort

The Sunflower Recreational Vehicle Resort was purchased in March 1995 pursuant to a Section 1031 Exchange. The property was purchased from the former lender of the property who had foreclosed on the park two years earlier.

 

The site was one of several dozen “luxury” RV parks that had been built in the outskirts of Phoenix over the previous fifteen years. The common area of the park included swimming pools, community halls, classrooms and other significant infrastructure improvements. At the time of the acquisition, the park was experiencing serious neglect. The on-site sewage treatment system was failing and occupancy at the park was suffering as a result.

Concorde Center

Concorde Center is a 48,116 square foot retail center located in Austin, Texas. At purchase in February 2005, the center was 66.5% leased, with approximately half of the spaces leased on a month-to-month basis. The center lacked a strong anchor that would give it identity and attract shoppers. Vacant spaces were scattered throughout the center and were too small to accommodate an anchor tenant.

Godwin Business Park

Godwin Business Park was purchased by SugarOak in February 2001 from a distressed seller at the behest of his lender. At the time of purchase, the property had been poorly managed and maintained for a number of years. In addition, the seller, who was the largest tenant in the building, was in bankruptcy and vacated the property at the closing, leaving the property 40% leased.

SugarOak Acquisition & Revitalization Fund (SOAR)

In 2004, SugarOak formed SOAR, SugarOak’s first opportunistic investment fund, and raised approximately $10 million from investors. Over the following 18 months, SOAR purchased 4 properties, including 3 distressed outlet malls with occupancy levels of under 50% and an underperforming retail center. Each of the properties was redeveloped or repositioned according to an individually tailored plan.

As of the end of 2008, the majority of SOAR’s properties have been sold, leaving SOAR with approximately 46 acres of commercial land and a 51% tenant in common interest in 115,000 square feet of retail/flex space and 3 vacant commercial lots.

The remaining assets were sold by the end of 2009 with the investors receiving a 15.6% IRR.

SugarOak Opportunity Fund (SOF)

The SugarOak Opportunity Fund (SOF) was formed in 2010 to take advantage of a unique opportunity to acquire commercial and residential real estate assets at severely discounted prices. A number of economic factors had come together to create a group of motivated sellers. Due to the difficulty of obtaining financing for new real estate purchases, the pool of potential buyers was small, driving down prices and creating opportunities.

SOF continues to leverage the experience and contacts of the principals of SugarOak to seek out and capitalize on available opportunities. The primary focus is on properties owned by lenders or in the foreclosure process and those properties whose owners have severe liquidity issues.

By the end of 2011, SOF had purchase six properties and was fully invested. As of 2012, all properties are experiencing increased occupancy and growth in value.

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