TechRidge Office Park, Tulsa, Oklahoma

TechRidge Office Park is an example of a middle market transaction. This asset is a 549,744 office park investment that was sourced by the Principals through a local operating partner who was seeking a co-investor to provide part of the sponsor equity capital that was being required by the institutional investor. 

Messrs. Bartling, Brown and Olson’s underwriting concluded that the investment opportunity presented:

• an opportunity to make an investment with a quality operating partner with extensive experience in managing under performing office investment opportunities
• an opportunity to invest in a stabilized office property in a good location; and
• an opportunity with high cash flow characteristics and a low lease rollover tenant profile.

Messrs. Bartling, Brown and Olson formed an investment partnership that made a limited partner investment in the owning partnership.  During Messrs. Bartling, Brown and Olson’s ownership, based upon May 2007 financials, the occupancy increased from 82% to 87% and net operating income increased from $3.08 million to $3.53 million.  This investment also provided Messrs. Bartling, Brown and Olson’s partnership the right to participate in the general partner carried interest after a return of capital and a 12% internal rate of return to the investors.

This Property was sold on July 27, 2007 at a sales price representing an 18.2% premium to the venture’s purchase price.  Messrs. Bartling, Brown and Olson’s partnership earned a 22% net internal rate of return and a 1.4 net equity return multiple on the investment transaction.  

Granada Hotel, Atlanta, Georgia

The Granada Hotel is another example of a middle market transaction.  This asset is a 104-unit hotel in Midtown Atlanta, Georgia sourced by the Principals through a local partner who was seeking a co-investor to provide a portion of the general partner capital that was being required by the institutional investor. 

Messrs. Bartling, Brown and Olson’s underwriting concluded that the investment opportunity presented: 

• an immediate opportunity to harvest cash flow generating attractive current yield;
• an opportunity that provides additional redevelopment opportunity; and
• an opportunity in a sub-market with high demand for lodging where supply is declining and economic forecasts are positive.

Messrs. Bartling, Brown and Olson formed an investment partnership with the local partner and the institutional investor and purchased the property in September of 2006.  Through the local partner, the partnership was able to acquire the property before the seller listed it for sale and at a price well below its replacement cost.