Experienced & Credible
The best form of knowledge is gained from experience. Lutz Real Estate Investments excels by identifying unique opportunities, capitalizing on its knowledge and thinking outside the box. Our team takes pride on being smart and quick, uncovering value where others see pitfalls. Operating with a high degree of integrity, we have fostered close relationships with the nation’s most respected real estate firms.
The company’s strategy is national in scope, yet local in practice. Having a thorough understanding of the macro trends currently impacting the real estate market is paramount to the firm’s success; however, it’s our attention to detail that supports swift transaction execution. Because of our vast experience and investment approach, our team is able to identify properties that are underperforming and available at a disproportionate discount to stabilized values.
Acquisition Criteria
MULTIFAMILY
OFFICE
RETAIL
LAND
INVESTMENT OBJECTIVE:
Acquire an infill student housing community located at Texas A&M University which has a total enrollment of 50,000 +/- students and is poised for significant enrollment growth during the next five years. This acquisition was acquired directly from the seller, which resulted in attractive pricing and immediate above-average yields. These yields would be realized before LREI would implement its plan to upgrade the unit interiors, add an internet café, improve the site’s technology, and install carports, all of which would justify future rent increases.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- University Square is comprised of 140 units, 192 bedrooms in eleven, two-story buildings on a 6.32 acre site located within walking distance to Texas A&M. The property’s close proximity to campus, high concentration of one bed one bath units, and amenity package allow University Square to command higher rates than its competition while still maintaining a solid occupancy.
- University Square represented an off-market transaction and was purchased directly from the seller. The project was capitalized with a first mortgage from Fannie Mae along with equity from Harrison Street Real Estate Capital and Lutz Real Estate Investments.
- Upon acquisition, LREI immediately began to implement its plan of upgrading the unit interiors, retooling the amenities, improving the site’s technology infrastructure, and making select cosmetic upgrades to University Square. LREI has also established an aggressive marketing campaign aimed at renewing current residents early and pursuing prospective residents via social media / direct marketing.
INVESTMENT OBJECTIVE:
Acquire a well located student housing community located at Texas A&M University, which 50,000 +/- students attend college and has aggressive plans to increase enrollment within the next five years. Laurel Ridge was acquired directly from the seller, which resulted in attractive pricing and immediate above-average yields. These yields would be realized before LREI would implement its plan to upgrade the unit interiors, make select cosmetic improvements to the exteriors, and address all deferred maintenance issues.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- Laurel Ridge is comprised of 284 units, 568 bedrooms in forty-four two-story buildings consisting of townhomes, garden style and studio apartments. The property features a superior amenity package and is located on the university sponsored shuttle service transporting students to both Texas A&M and Blinn College, a key differentiator over its competitive set.
- University Square represented an off-market transaction and was purchased directly from the seller. The project was capitalized with a first mortgage from Fannie Mae along with equity from Harrison Street Real Estate Capital and Lutz Real Estate Investments.
- Upon acquisition, LREI immediately began to implement its plan of making select upgrades to the interiors/exteriors, retooling the amenities, and improving the site’s technology infrastructure. LREI has also established a marketing campaign aimed at renewing current residents early and pursuing prospective residents via social media / direct marketing.
INVESTMENT OBJECTIVE:
Acquire an outdated 123,000 square foot neighborhood grocery anchored shopping center, expanded the property to 142,000 square feet and reposition it as one of the premier shopping centers located in West Chester, an affluent suburb of Philadelphia, PA.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- Bradford Plaza Shopping Center was acquired in a structured finance transaction with an acquisition loan from Heller / GE Capital.
- Lutz Real Estate Investments replaced Bradford Plaza’s existing 42,500 square foot grocer, Giunta’s Market, with Giant Food Stores, an AHOLD company. Giant executed a long-term lease and developed a ground up, 69,650 square foot facility. The state-of-the-art store created a one-stop shopping opportunity for local area residents.
- Inline facades were renovated to compliment Giant Food’s prototype storefront and to enhance the property’s overall image.
- Lutz Real Estate Investments created separate tax parcels for potential retail pad sites, which significantly enhanced the property’s value.
INVESTMENT OBJECTIVE:
Acquire the office building in an off-market transaction and through cosmetic renovation, increase the building’s net operating income and eliminate unnecessary expenses in security and payroll.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- The Peachtree Lenox Building represented an off-market transaction, which was acquired from a pension fund advised by GE Capital. The project was capitalized with a first mortgage from JP Morgan and a mezzanine loan from ITW Investments IV, Inc.
- Following acquisition, ownership increased the building’s net operating income by making targeted cosmetic improvements, including the renovation of an outdoor plaza area with frontage along Peachtree Road. In addition, ownership increased cash flow by eliminating unnecessary expenses related to payroll and security.
- During ownership, Lutz Real Estate Investments greatly enhanced Peachtree Lenox Building’s value by creating a plan for a high-rise condominium development to the back of the site. The plan would create a fully functional mixed-use development incorporating a 235,000 square foot, 21-story residential tower with an anticipated sale price at that time of more than $350 per square foot.
INVESTMENT OBJECTIVE:
Acquire the 552,927 sq. foot. corporate campus and expand the occupancy by 10% while maintaining and expanding the tenant list.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- Shoreview Corporate Office Park is a first-class, 552,927 square foot corporate campus that was acquired in 2003 from a joint venture partnership between Eagle Ridge Partners and Cargill.
- The Shoreview Corporate Center is comprised of five (5) buildings on 34.2 well landscaped acres in suburban Minneapolis.
- The project was capitalized with a first mortgage from UBS and a mezzanine loan from Capri Capital.
- Following acquisition, ownership successfully increased occupancy from 90% to 100% by expanding and extending the lease terms of several credit tenants: Medtronic (AA-), Land O’Lakes (B), Deluxe Financial Services (BBB+) and Hil-Rom, a Hillenbrand Industries Company (A+).
INVESTMENT OBJECTIVE:
Acquire a highly visible, twenty-one story office building that offered an ideal blend of long term stability and upside potential through in-place rents that were substantially below market. Reposition the property in conjunction with Center City’s revival and the opening of the Kimmel Center for Performing Arts, a $250 million project located adjacent to the Atlantic Building.
INVESTMENT SUMMARY:
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INVESTMENT HIGHLIGHTS:
- The historic Beaux Arts-designed, 325,000 square foot Atlantic Building represented an off-market transaction and was acquired from a pension fund advised by GE Capital.
- The project was capitalized with a first mortgage from JP Morgan and a mezzanine loan from Capri Capital.
- Subsequent to acquisition, ownership invested capital for targeted cosmetic and capital improvements. Thereafter, ownership renewed and expanded several major tenants on a long term basis increasing the occupancy from 80% to 100%, where it remained for more than 6 years. The facade of the Atlantic Building was donated via an easement to the Philidelphia Historical Society.
- The Atlantic Building was refinanced three years after acquisition and returned more than 175% of the investor’s initial equity investment. In addition, the donation of the easement brought in significant tax savings to the partnership.
