BELLAIRE MEDICAL PLAZABELLAIRE, TEXAS
Capital to be Raised
Medical Office, Value Add
Capital to Be Raised
Targeted Equity Multiple on Exit:
Targeted Avg. Cash-On-Cash:
75% to investors / 25% to Manager
Targeted Hold Period:
Offering Close Date:
March 26, 2021
* There is no guarantee that targeted returns will be met or that preferred return payments will be made.
We believe the Property has been mismanaged by prior ownership and presents a unique opportunity to benefit from in-place cash flows and capture value-add returns through leasing vacancies, actively managing the rent roll, and monetizing the excess land. Fairway and Rycore Capital (“Rycore”) intend to co-manage and co-execute the business strategy for acquiring, improving, operating, and disposing of the Property.
- Target stabilized occupancy of 90% through implementation of a value-add improvement strategy
- Strengthen the rent roll by renewing approximately 76% of the tenants in a mark-to-market rent strategy during the initial four years of the hold period and adding new tenants in this high demand area
- Sell the excess land in the second year of the targeted hold period
- Professionalize leasing, management and execution of operations to take advantage of well-positioned location and asset type
- Generate strong cash flow during hold period and then market and sell the asset upon stabilization of the rent roll and favorable market conditions
- Acquiring the property at a low basis ($138 PSF) and a 7.6% in-place cap rate
- Long term historical tenancy (average 8.5 years) with opportunity to fill existing vacancy. Two tenants, making up more than one-third of the leased space, have been in the building for an average of 19 years
- Synergy among the existing tenant base and the nearby hospital
- Upside potential from below-market leases. Limited tenant improvement cost given the existing medical office build-out of the suites
- Co-Manager with a track-record in the medical office sector
* The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, and lack of diversification. This opportunity is unsuitable for investors who are not prepared to hold their ownership position indefinitely and who cannot afford a complete loss of capital.