Transactions

Stoneforge Advisors is looking to acquire office and industrial assets across the Sunbelt markets.  In addition, we look to work with companies that need expertise and assistance to grow and enhance their business.  For acquisitions, we seek to complete transactions with firms that need flexibility in deal structure and lease terms. The following transactions are examples of transactions that Stoneforge has completed or is considering:

Asset Investments

Santa Fe Office

Stoneforge acquired a vacant 77,000 square foot office building in suburban Santa Fe, New Mexico in June 2012.  The property was vacant for almost two years and is being reintroduced to the market with the largest available conti-
guous blocks of office space to meet the needs of government, medical, call center and film oriented users.  

With 4.3 per 1,000 parking and excellent visibility for signage from I-25 and St. Francis, the property is also an attractive option for alternative uses including senior housing and mixed use.  The current business plan is to stabilize the property with short term leases while actively marketing to larger space users with long term needs.  Alternative uses will be investigated with the potential to reposition the property in the mid term based upon market demand.




Atlanta Residential Lots

Several land investments have also been made including the current ownership of Groovers Lake, the fourth phase of a suburban Atlanta starter home community.  Purchased in 2005, the 17 acre site contains 66 lake front lots and 19 town-home lots.  The town-home lots were sold in 2006, returning over 50% of initial equity to investors. Development of the adjacent phases has recommenced with new home building expected soon.

Case Studies

Portfolio Consolidation

Situation: An investment banker is working with a middle market company in need of revising its capital stack. To maximize proceeds and flexibility, the company is looking to divest its non-strategic real estate holdings and consolidate its operations into a portion of the firm’s existing distribution facilities located throughout the South. This transaction is integral to the restructuring/replacement of the company’s outstanding bank debt.

Solution: Stoneforge is providing a structure that will allow the company to consolidate in a manner that will have limited impact on its operations. The company will lease and operate its strategic facilities and partially leaseback the balance of the industrial portfolio. This partial sale leaseback also provides a flexible leasing program with staggered lease terms to allow for an efficient consolidation and continuous operations.

Result: Once completed, the company will have an improved balance sheet and additional funds available to reinvest in its core business. The company will realize value by controlling the timing of its consolidation and gain efficiencies by reconfiguring operations within the strategic facilities while maintaining its production deliverables.

Takeaway: Stoneforge has the expertise to evaluate the pricing of a partial sale leaseback that requires the investor to acquire vacancies and short term leases and they have the ability to understand middle market companies allowing for a client based real estate solution.

Partial Sale Leaseback

Situation: A non-profit organization is underutilizing an office building they own in the Southwest. They are in need of additional capital to fund future operations and have the ability to improve their operating efficiencies by consolidating their real estate holdings. Being a community based concern, continuity in location and visibility is of primary concern for the organization.

Solution: Stoneforge has offered to buy the non-profit’s office building and provide a flexible leaseback arrangement whereby the tenant would control the entire building for two years and then approximately half of the building on a long term basis. This lease structure enables the non-profit organization adequate time to consolidate its operations while maintaining its current location.

Result: Once completed, the non-profit will have the capital required to focus on its core expertise. More importantly, they will remain in their current location which allows them to best serve their community, employees and donors.

Takeaway: Stoneforge is able to provide creative solutions that meet the needs of their clients. Our real estate expertise enables us to measure the risk of investing in short term leases and vacant spaces while having the skill set required to understand the credit worthiness of various organizational structures.