The Battery

The Battery

Phoenix, AZ

Ground-up development of a 278-unit Class A multifamily project in downtown Phoenix, Arizona.

Asset Type

Multifamily

Acquired

2018

Scope

278 Units

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Key Investment Thesis

Opportunity to develop the first for-rent housing project within the Warehouse District, a burgeoning tech hub in downtown Phoenix that has seen significant revitalization within the broader submarket.

  • Extremely desirable location adjacent to Downtown Phoenix’s Chase Field, Footprint Center, and CityScape mixed-use hub.
  • Unique positioning within market as the first for-rent residential project in the Warehouse District and the only mid-rise product situated around the south end of downtown, which is otherwise characterized by luxury high-rise buildings.
  • Significant sustained growth of both the Downtown submarket as a whole, as well as the Warehouse District itself through entrants of new creative office user such as Galvanize, Web PT, Scientific Technologies Corporation, Seed Spot, CCBG Architects, Gould Evans, R&R Partners, Bentley Gallery and the ASU School of the Arts

JMA Value Creation

Acquisition of off-market site, navigating Phoenix’s construction market during a period of record high new development and COVID-19 impacts, ultimately derisking the project and delivering a highly competitive project within the market.

Navigated a volatile construction market while securing a competitive A&E and construction team while securing a favorable GMP contract with general contractor Hardison Downey.

Procured a best-in-class management team with Greystar and oversaw the successful lease-up of the project.

Identified an opportunity to participate in the Qualified Opportunity Zone tax program, allowing investors to benefit significantly from special tax treatment of capital gains from the IRS stemming from the Tax Cuts and Jobs Act of 2017.
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ANC Portfolio

ANC Portfolio

Henderson, NV

Acquisition and repositioning of a 439,000 SF class A & B office portfolio located in the Green Valley master-planned community of Henderson, NV.

Asset Type

Office

Acquired

2018

Scope

439,000+/- SF (8 buildings)

EXIT

  • 6 buildings sold: 2022
  • 2 buildings sold: 2023

Key Investment Thesis

  • Off-market acquisition at attractive basis given previously failed disposition process and challenging CMBS debt encumbering a portion of the portfolio.
  • Significant value creation possible through leasing of existing vacant space as well as lease rolls of existing tenancy.
  • Extremely desirable location and robust submarket within broader Las Vegas MSA poised for significant growth during hold period.
  • Strategic capital improvements to modernize the dated assets, including common areas and landscaping in conjunction with new tenant buildouts.
  • Strong continued market growth of the overall Las Vegas area given sustained in-migration driven by affordability and high quality of life.

JMA Value Creation

Off-market transaction sourced through JMA’s relationship with the owner and original developer.
Implemented $2.0 million of strategic capital improvements and $5.4 million in tenant improvements including strategic speculative leasing initiatives such as a complete interior demolition and rebuilding of a 33,000 SF former trade school space.
Successful leasing strategy, bringing portfolio from 73% leased at time of acquisition to 92% leased at the time of sale, despite 286k SF of lease roll between 2019 and 2022, and, despite Covid-19 impacts to the office market, successfully executing on more than 160k SF of new and renewal leasing in 2021 alone on the heels of the shut-down.
Leasing highlights included a 47k sf lease to public healthcare company as well as the re-tenanting of former trade school space to three credit tenants in the insurance and financial services sectors.
Assumed challenging CMBS loan while navigating to a favorable exit ending with defeasance of CMBS debt.
Facilitated a successful sale process while achieving attractive exit pricing of $329/SF (vs. acquisition basis of $200/SF) during a time of significant disruption to capital markets in the office sector.