written by
Rocco Cortese

Intersection Investment Management Acquires Industrial / Flex property in Gilbert, Arizona

Intersection Investment Management is pleased to announce it has acquired a 92,750 square foot multi-tenant flex industrial property in Gilbert, Arizona. Representing brokers, David Bean and Cory Sposi of Commercial Properties Inc., completed this off-market deal bringing the second acquisition in Intersection’s post-pandemic industrial investment strategy. The strategy focuses on $5-$20M projects in markets west of Denver based on post-covid market trend forecasting. The investment was syndicated to a group of Intersection’s high net worth investors. It is the company’s 8th acquisition in total and the fund now has surpassed over $100M in historical deal transaction volume. Anton Myskiw, Intersection Senior Analyst and Phoenix native who sourced the deal says,

“Given the competitive nature of the market for this kind of product, we have to recognize the great work done by our brokerage team at Commercial Properties. They have worked collaboratively with us for months in the Phoenix Metro area and helped us find a great deal off market.”

The Sellers, Golden Key Industrial Park LLC. who previously held and managed the property as private investors, focused upon occupancy rather than driving rental rates. This resulted in an opportunity to hold rents at market while completing significant improvements at the property. This will allow Intersection to focus on tenant experience and make improvements that will improve curb appeal and value-add. Planned renovations include new paint, parking lot resurfacing, landscape upgrades, and, new tenant signage to provide greater visibility. Rocco Cortese, Managing Director with Intersection confirms,

“Multi-tenant flex with a value-add component represents a very good risk profile for our investors. The Southeast Phoenix market has great fundamentals and we can see a clear path to demand for high quality product like KeyWest Plaza. Fundamentally, that is what we set out to do on every deal”

Intersection envisions and intends to create a best-in-class flex industrial asset to meet the demands of the accelerated growth in the Gilbert market. Commercial Properties LLC. will continue to manage and lease the property on behalf of Intersection. David Bean, who represented the seller as broker for Commercial Properties, Inc. notes,

“Intersection is relatively new to this market, but quickly understood where the growth opportunities could be found. We look forward to working with them as they execute the strategy on this property.”

To learn more about this deal please reach out to Rocco Cortese at rcortese@intersectioncre.com or Anton Myskiw at amyskiw@intersectioncre.com

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Kyle Clark

Prominent four-building retail center has been sold in an off-market deal

Senior Director Kyle Clark represented the seller of a prominent retail center in the Sports Arena district in San Diego, the Four-Building property located at 3146-3194 Midway Drive, San Diego CA, 92110 closed earlier the last week of April.

At the time of sale, the property was 95% leased to an array of both local and national tenants, including Taco Bell, Epic Wings, Kyoto Sushi, and Tandoori House. Additionally, National credit tenant Popeye’s Chicken will be opening in the center this Summer operating out of the corner unit that

The purchase was structured to accommodate the amicable dissolution of a business partnership between the two sellers’ families.

“This was an opportunity for our clients to sell the property to settle a jointly owned and operated business they ran for decades but have recently sold in Central California.” -Kyle Clark

The off-market deal was transacted through the outreach of interest through the purchasers. The buyers look forward to continuing operating the property as it has been while anticipating the eventual redevelopment of the Sports Arena site, the former post office headquarters, and the surrounding area which is believed to bring new life to the area.

 

To learn more about this deal please reach out to Kyle Clark at kclark@intersectioncre.com

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Rocco Cortese

Intersection is pleased to announce the sale of a fully leased and stabilized internal investment fund property managed by Intersection

Experiential Poway Retail Center Closes for $13.5 M

Senior Directors, Kyle Clark, and Dan McCarthy along with Senior Associate Alec Spencer, represented the seller in the sale of the North County retail center, Old Poway Village at 14005-14055 Midland Road, Poway CA. The 35,191 square-foot award-winning center consists of a selection of carefully curated retail tenants.

The property was sold as a fully leased and stabilized investment. After acquiring the property in 2017, Intersection established a new vision for the center that focused on building a destination lifestyle center for the Poway Community. To accomplish this, Intersection replaced several non-performing tenants with new, carefully curated businesses to create a retail experience conducive to the family neighborhood of Poway and surrounding North County residents.

Artisan Food and Beverage tenants The Hop Stop, Smokin’ J’s, and Mission Cellars anchor the center, and they are complemented with users such as the Bark and Collar, Poway Music Academy, Poway Pilates, and a lineup of other local tenants that support a unique dining and shopping experience.

“This has been a true passion play for Intersection.” Said Mark Hoekstra, Managing Director of Intersection. “I grew up in this neighborhood and always felt that this center could become something special. It has been an amazing journey seeing this property transform”.

The property was sold to a 1031 Exchange Buyer who closed within 45 days of opening escrow. “We positioned this asset to sell with clean triple net leases, good lease term on the rent roll, and have maintained the property impeccably.”, shared broker Kyle Clark “The Escrow was smooth with no surprises.”

The buyer plans to hold the asset long-term drawing upon the stabilized cash flow. “This property performed very well during the pandemic.” Stated broker Dan McCarthy. “Our tenant base was resilient, and the many outdoor areas benefited our food and beverage tenants significantly.”

To learn more about this deal please reach out to Kyle Clark at kclark@intersectioncre.com or Dan McCarthy at dmccarthy@intersectioncre.com

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Anton Myskiw

Intersection Makes First Nevada Acquisition Adding to a Diverse Portfolio of Value-Add Properties in Attractive Growth Markets

LAS VEGAS, Nevada. – Intersection officially announced the close of escrow on a 100% occupied 18-unit flex industrial property in Las Vegas, Nevada for $4,525,000. This property is the seventh acquisition made by the company crossing $70M of total capitalization.

The property, located at 4355 -4375 W. Reno Ave., Las Vegas, NV 92105 is a two-building project in West Las Vegas and was purchased in an off-market transaction from a local ownership group. The deal was sourced off-market through a local broker Erik Sexton of NAI Excel Las Vegas.

“This was a property that needed institutional quality management and an entrepreneurial strategy. Intersection recognized the value and moved quickly.”

Said Sexton. Intersection Senior Analyst Anton Myskiw added, “We have been working diligently to find industrial/flex assets in this market. We’ve already completed 3 new leases and will execute a value-add plan that improves operations as well as the curb appeal of the property.”

The asset is currently 100% leased by a wide cast of both local and regional tenants, with 72% of the building’s occupancy rolling in the next 12 months. Las Vegas is an attractive industrial growth market, given its positioning as a centrally located logistics hub for the Western region of the states. With 8.5M SF of industrial space under construction in the second quarter of 2021- Intersection is confident this property is a prime candidate to attract auxiliary/complementary users servicing the larger projects-general contractors, material vendors, and other development-focused tenants.

To learn more about this transaction or to inquire about how to invest in a portfolio property please contact Senior Analyst Anton Myskiw at amyskiw@intesectioncre.com

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Emily Bane

Intersection Completes 1031 Exchange for Long-Term NNN Lease

Intersection represented South Lind Square, LLC in the 1031 exchange which resulted in the purchase of the Safeway at La Toscana Village in Tucson, Arizona for $10,750,000. Intersection Managing Director Mark Hoekstra and Senior Director Rob Kerr represented the buyer, Greg Cortese of The Royston Group represented the seller. 

The 46,798 square-foot retail property is located at 7110 N. Oracle Road, Tucson, AZ 85704. The retail center is situated in a densely populated, affluent and developing area of Tucson. The Safeway building is one of 14 that comprise La Toscana Village, which is anchored by national retail tenants, and located at a heavily trafficked intersection at N. Oracle Road and W. Ina Road. 

Originally built in 1992 and renovated in 2014, 7110 N. Oracle Road is 100% occupied by Safeway in a 20-year NNN lease with options and regular base rent increases.

The property was part of the buyer’s upleg for their 1031 exchange, acquired at a 5.2% cap rate. The lease was corporately guaranteed by Albertsons Companies. Financing for the transaction was provided by 40/86 Mortgage Capital with the assistance of Charlie Robinson of NorthMarq.

Intersection was approached by the buyer to identify 1031 exchange opportunities that would provide both a high-quality and safe investment for the family that met their long-term goals, requirements, and criteria. 

“The process involved the thorough evaluation of numerous properties of all types across a diverse range of desired geographic locations nationwide,” said Kerr. “In the end we were able to identify a number of great options that met requirements, and the client settled on this excellent Safeway investment in Tucson.”

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or ebane@intersectioncre.com

written by
Rocco Cortese

There is a mystical element to the concept of a Family Office. Seen, but not heard. Looked for, but not found.  In the past few years the Family Office has become a commonly used term when it comes to raising capital. Someone you know has relationships, is targeting, or working with a large Family Office, or a group of them. When I first heard the term, I thought to myself “This is a group of investors we have to get connected with. We built our company by delivering informed strategy and highly personalized service to private investors and owners of commercial real estate. They are the ideal client profile!” So, we embarked upon a journey to build a set of relationships with high quality, high net worth family offices who were looking to get more out of commercial real estate. We soon realized that it wasn’t going to be easy.

We started our research where any astute business person would; we googled it, “Family Office Investing” and up came the results. Pages and pages of lists, referral sources, strategies and conferences that would give us access to the names, locations and in some cases investment strategies for all shapes and sizes of family offices.  We didn’t feel like buying a list of names for $4,000 was the best value proposition so we attended conferences where we might connect with a few of them (there are many to choose from). I can tell you from personal experience, few if any of these family offices or their representatives want to be solicited at a conference. Unless you have a direct referral into them, or a preexisting relationship, connecting was not easy. Soliciting really isn’t our style anyway, so we were left in a bit of a lurch as to next steps.

With little success in making connections to new family office relationships, we paused and took a long look at our own company. We needed to get a better idea of who we were and whether or not we were a fitting partner for family offices. We were just getting started with a branding project and part of that project was to interview our current clients in order to better understand their expectations of us. The process resulted in a new name, look and set of internal values that really spoke to who we were.

A significant part of the branding project was research. We interviewed internal stakeholders and fifteen clients across all categories of the service platform. These interviews gave us incredibly valuable insight as to what our clients liked and disliked about the various services we provided for them. It was then that we realized we were going about the idea of building our client base with family offices the wrong way. We knew we could do good work for them, and we knew we wanted to grow relationships with like-minded investors.  However, we didn’t understand that the value our company offered them wasn’t as important to them as our values. By clarifying our values, we took the first and most important step in building a platform that would put us in a position to broaden the set of investors for whom we worked. Today, many of them are family offices and the way we have done it has been an enlightening and fun journey.

There are many kinds of family offices and they need trusted partners with whom they can invest. We recognized this because when we analyzed our current list of clients, we found that a couple of them had portfolios with significant value. They trusted us to manage and lease multiple properties worth millions! They were our best clients and they were actually running a micro-family office.

A micro family office is characterized by the volume under management being much smaller than the normal minimum threshold to set up a family office. We were working for two micro-family offices but just didn’t think about them that way. In fact, and this is often the case with micro family offices, they did not view themselves to be in this category of family offices at all. We had built deep relationships with these clients over the years and had a successful track record of performance for them. Understanding their bigger picture objectives-legacy, transference of wealth, charity, and many other dynamics of their family office helped us put together a road map for future family office clients.

Single family and multi-family offices generally operate on a much higher scale than the micro-family office. Here is the distinction:  The single-family office only serves one single family and does not accept external management mandates. The multi-family office services more than one family and may offer a more generic solution to their clients. In fact, many of the family offices that would seek out a multi-family office partner to support them are so large that they operate much like an institution.

Remember a little earlier when I mentioned values?  An integral aspect of our branding project was establishing core values. In our company, they are Wisdom, Equality, Determination, Ingenuity, Stewardship and Collaboration. These values speak to the internal qualities that govern our conduct, and external qualities that support our clients. With that clarity, our entire organization has circled around a path that is destined to enhance the lives of those we serve. Our brand promise, “vision and guidance to help you get more out of commercial real estate”, similarly supplied us with critical direction. By defining who we were internally and how we had helped our clients over the years, we developed the correct ethos with which to engage this mystical entity called the family office.

The reality that we were already working with micro family offices helped us be more intuitive as we serviced them. Some still don’t think of themselves in the micro family office category, but they are. Our relationship with our micro-family offices blossomed with the start of our first fund. It gave us the opportunity to put our own money into investments alongside of them and elevate the trust they have in us. Fortunately, they told a few friends about what we were doing, and we built relationships with a few new families.

Today, we have grown into the proud manager of commercial real estate for six family offices that vary in size. The smallest of those is a $30M family and the largest is a family worth hundreds of millions. We learned that the key to building those relationships was creating a matching set of values, and a service profile that matched as well. That took us to new product offerings and to new relationships that allow us to do what we do best. The mystical element didn’t really exist at all…we were already doing work for them and just needed to define the alignment that had made us successful partners over the years.

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