Coles Crossing (45,000 SF) - Located in northwest Houston on Highway 290 at the Cole’s Crossing intersection, this property includes a Randall’s on lease and substantial in-line shop space. The project was purchased with AMG Guaranty Trust as a capital partner in 2004 and sold in 2006. The sale was expedited due to its peripheral location, concerns about the strength of Randall’s in the marketplace and our anticipated inability to find suitable replacement tenants for the anchor space, should it become vacant. The capital partner received an annual IRR return in the mid 20’s percent range.
Northwest Village (200,000 SF) – Slightly closer to Houston than Cole’s Crossing at the Jones Road interchange with Highway 290, this property was purchased with a former Randall’s location that had been vacant for over 10 years. Brian Cujé, as managing partner for this asset, terminated the lease with Randall’s, completed a $1 million renovation and subsequently leased this space to Spec’s Liquor, Prudential Real Estate and others. The property was initially purchased for $8.5 million with SV Capital as the partner. The project was approximately 50% leased at acquisition and then sold at approximately 75% occupancy. This sale was re-capitalized with AEW Capital Management at $15 million. Continued leasing and asset management enhanced the value to the ultimate sales price of $21 million occurring in 2007. Both capital partners received returns in the low 20’s percent range.
First Colony (111,675 SF) – The project is located in the southwest Houston area known as Sugar Land. The project was acquired with a vacant Randall’s (68,150 square feet) with 30,000 square feet of strip retail attached. The project was capitalized in 2007 with Capmark Financial as a joint venture partner. Mr. Cuje is the asset manager on this project and it is expected to generate a substantial profit within the next few years by re-leasing the vacant Randall’s anchor space, however, the lease is secured by Safeway credit through 2018 providing financial stability.
HEB Clear Lake (58,279 SF) – Located in southeast Houston about three miles to the east of Interstate 45 in the Municipality of Clear Lake, this project was purchased for $10.8 million and is still owned with AMG Guaranty Trust. HEB is a shadow anchor and is not a part of the owned property. Acquired in 2005 as a core asset, this project has been improved with substantial leasing an new tenants include; Chicago Title, Memorial Herman Medical, and Coastal Bank.
Kroger Cypresswood (34,730 SF) – Located in northwest Houston at the Cypresswood exit from Highway 249, this project is very similar to the above HEB Clear Lake. A shadow anchored core asset purchased with AMG for $8.5 million and held for long-term gain. The project is currently earning a 15% cash on cash return.
Kroger Dickinson (80,000 SF) – This project is located approximately 40 miles southeast of Houston in the City of Dickinson, directly off I-45. It was purchased by Mr. Cujé and other private investors as a long term hold, in 2006 the Kroger is on lease at a below market rental rate (37% of market) and the plan is to wait until this space can be re-leased at higher rental rates.
Alameda 225 (55,000 SF) – Located in Aurora, Colorado this property was acquired due to its low price per square foot and as a potential redevelopment. The building is situated on five acres in the northeast corner of the Aurora Mall and was purchased from Principal Mutual for $3.3 million in 2000. The property was held for five years and then recapitalized by a partnership consisting of Brian Cujé, Mark Donahue and other private investors for $4.8 million. The sale resulted in a 20% IRR return to the exiting partners. The long term plan is to wait for the current tenant options to fully expire. Current rents are approximately one-half of the current market rates. A twenty year ground lease with Chick-Fil-A was approved in May of 2010, and has enhanced the asset value by $1.5 million.
Sheridan Blvd. (72,0000 SF) – Located in Westminster, Colorado, the Sheridan Boulevard retail center was acquired in 2000 with a large vacancy of 30,000 sq ft. The project took several years to lease due to softness in the Westminster sub-market, but was ultimately stabilized by the occupancy of a regional health club and Harbor Freight Tools. It was recapitalized in 2006 resulting in a 10% IRR return to the initial capital partner. The new entity is controlled by John Kechritois and Mr. Cujé, who will be the beneficiary of below market rents. Cujé performs the asset management duties.
Kirkwood Shopping Center (80,000 SF) – Located in Houston Texas, this retail center was acquired in 2002 for $6.8 million with a private investor and Brian Cujé as the General Partner. Acquired with a vacant HEB grocery store, Cujé terminated the lease, completed the renovation and then re-leased the vacant anchor to Sports Authority. The project was re-capitalized in 2006 with a retiring capital partner IRR based return of over 25%. The property is now controlled by John Kechriotis and Brian Cuje. The project underwent a total exterior renovation in 2008, and is able to remain competitive with newer centers in the trade area.
Stor-N-Lock (80,000 SF) – Within the past 3 years, we have provided the capital to construct 3 self-storage projects in a joint venture arrangement with Stor-N-Lock of Utah. The capital was obtained through a private placement memorandum with a small number of accredited investors. The projects include SW Denver, Gypsum and Ft. Collins locations. The oldest project (SNL #19 in SW Denver), now provides the investors with a cash distribution (return) of approximately 35% to their equity investment.