investment Strategy
  investment case studies  
     
 
  One East Broward BLVD, Fort Lauderdale, Fl (August 2011)

 
 
  Acquired controlling interest in Class A office tower at significant
discount to replacement cost in major CBD through distressed
recapitalization
 
Overview
350,000 SF 19-story building built in 1984
Recapitalized the ownership of a Class A office tower in the Ft. Lauderdale CBD in off-market transaction
Provided a tax efficient solution to current ownership while taking a fully controlling preferred equity position
Repositioned and rebranded asset with significant upgrades and ribbon cutting ceremony in April 2013
Investment Thesis
Class A office asset – well-located within an established CBD with a strong occupancy history, improving fundamentals and investment sale benchmarks
“Basis reset” – allows Ivy to be competitive in the leasing market
Structuring – senior lender staying in the deal provided a level and cost of financing that was otherwise unachievable at acquisition
Exit upside – below market leases will make the property attractive to buyers looking for upside during the next cycle
Status
Continue to own
Completed major capital improvements
Rebranded the building
Significantly increased occupancy including leasing top 3 floors to major law firm
 
     
  100-102-110 Duffy, Hicksville, NY (September 2012)

 
  Acquired 420,000 square foot asset well-located to mass-transit at deep discount from lender with significant repositioning value
 
Overview
420,000 SF building and 7.4 acres acquired in off-market transaction from lender
Adjacent to LIRR express stop to NYC. In May 2012, the LIRR and MTA committed to a major renovation of the station and surrounding area for $100mm
Investment Thesis
Excellent location at express LIRR stop – building at express train station attracting tenants, commuters with parking demand
Attractive entry point – low basis allows for Ivy to offer below market rents to attract tenants
Operational platform value-add – limited prior management and leasing oversight. Significant leasing opportunity with repositioning of asset
Status
Sold 102 and 110 Duffy to NYCB at significant profit and reduction of cost basis
Continue to own 100 Duffy
Completed major capital improvements in 2014
  Metro Park, Iselin, NJ (September 2003)

  Acquired a Class A, three-building campus, net leased by Prudential at a significant discount to replacement cost
 
Overview
830,000 SF, three building campus net leased to Prudential
Located in the Metropark - NJ submarket, which has Amtrak and NJ Transit Train service along with excellent highway access
Investment Thesis
Class A building in excellent location – Amtrak and NJ Transit within a quarter-mile and extensive highway access
Proprietary market knowledge – Aware Prudential wanted to downsize. Attract subtenants that mitigated the Prudential lease expiration risk
Right-sizing financing – Negotiate a prepayment of existing debt and refinance at market terms which would generate excellent current yields
Status
Sold to Tishman Speyer in 2006. Largest transaction of the year in the state of New Jersey
  225 Summit Avenue, Montvale, NJ (August 2004)

  Acquired well-located, excess corporate real estate (REO)(former Toys "R" Us HQ) at a significant discount to replacement cost
 
Overview
130,000 SF office building on 40+ acres in an off-market transaction
Prominent location in a market dominated by corporate and regional headquarters
Investment Thesis
Excellent location at Garden State Parkway Exit 172 Interchange in a market with excellent demographic and corporate presence
Attractive basis – low basis to allow Ivy to fully renovate the building into a modern, Class A corporate HQ facility
Operational platform value add – Ivy’s asset management team to work with the town and 3rd parties to orchestrate a re-zoning and residential subdivision and sell land to reduce basis
Status
Subdivided, re-zoned and sold 20 acres to a residential developer
Expanded building to 142,500 SF, fully renovated and leased to Teva Pharmaceuticals
Sold to CBRE Investors in 2010
  Ivy Realty Fund III: 1200 Madison, Paterson, NJ (May 2013)

 


 
Overview
245,529 SF institutionally designed distribution facility with rents 30% below market
Fifteen miles from NYC located at a four-way intersection off I-80
30’ clear height, 39’ x 44’ column spacing and 21 loading positions with availability for a rail link
Three long-term tenants with no lease expiration before 2020
Underwent a capital improvement program from 2005-2009
Investment Thesis
Excellent location near NYC – proximity to densely populated and affluent northern NJ as well as to NYC and the east coast’s largest port
Strong cash flowing asset – attractive cash flow yield after debt service and reserves
Limited industrial supply – Passaic County’s vacancy rate of 8.4% is one of Northern New Jersey’s lowest with no new industrial construction activity currently taking place within the submarket
Under-market rents – Local market rates exceeding $5.00/sq. ft. and current contract rates averaging $3.61/sq. ft. (approximately 30% discount) position future buyer to benefit from periodic rent steps and higher market rates when leases start to roll in 2020
Status
Continue to own
Completed minor cosmetic improvements to the site
Rebranded building as the Route 80 Distribution Center
  100 – 150 College Road West, Princeton, NJ ( Feb 2014)

 
Acquired a Class A, two-building complex (REO) at a fraction of replacement cost in a strong submarket of Princeton
Overview
225,651 SF Class A, two-building complex purchased through lender REO sale
The property was 83% leased but 94% of the leased space was dark, providing an opportunity to collect cash flow while marketing the space for lease
Investment Thesis
Excellent location –The property sits at a four-way interchange and adjacent to an extensive amenity base at Princeton Forrestal Village
Healthy Submarket - located within the Princeton/Route 1 submarket, which is the strongest submarket in New Jersey. The competitive set is 91% leased
Low Basis – The property was being purchased at a very compelling basis and at a significant discount to replacement cost, the prior sales price, and the prior mortgage amount
Flexible Building Layout – The property represents the only contiguous availability greater than 100,000 SF in the submarket. Alternatively, the buildings lay out well for a multi-tenant strategy if that strategy is pursued
Status
Signed LOI (and subsequently a lease) with Sandoz Pharmaceuticals for 68% of the property prior to bidding, taking occupancy to 75%
Executed sale of 100 College Road West in July 2014 at $412/SF, a New Jersey record
Continue to own 150 College Road

 
35 Field Point Road, Greenwich, CT 06830 | 203.987.3390
102 Chestnut Ridge Road, Suite 204, Montvale, NJ 07645 | 201.573.8400