Acquisition
Acquisition
We are value add buyers of real property in the four major “food groups”; industrial warehouse, retail centers, multi-family apartments, and office buildings.
At KBHB Funding we are investors in commercial real estate. As you can see from our acquisition criteria, we have a broad scope, yet very specific investment we go after. We target commercial real estate in growing markets, that offer upside with operations and management efficiency. We are always conscious of market fundamentals in our underwriting, and aim to complete due diligence and fund investments as quickly as possible. You can see a selection of completed transactions below.
Property Acquisition Criteria
- Industrial, retail, multi-family, office
- MSA and submarket growing above national average with respect to job and population growth
- Some in place cash flow with strong value-add component
- Any market across USA
- From $1mm – $40mm acquisition amount
Selected Transactions
Below are several past and present property acquisitions that illustrate our investment scope and strategy.
Location: Taft, CA
Property: Retail
Strategy: Distresses
Hod Period: 1 yr
Realized IRR: 81%
Location: Phx, AZ
Property: Retail
Strategy: Distresses
Hod Period: 2 yr
Realized IRR: 21%
Location: Sandpoint, ID
Property: Office
Strategy: Value Add
Acquired: 2017
Realized IRR: Active
Location: Los angeles, Ca
Property: Industrial
Strategy: Hold
Acquired: 2018
Realized IRR: Active
Location: Ellisville, MO
Property: Retail
Strategy: Value-Add
Acquired: 2014
Realized IRR: Active
Case Study – Grandview Plaza
In 2016 KBHB Funding purchased Grandview Plaza, a 290,000 sf shopping center in Florissant, MO. The shopping center was in close proximity to other investments allowing for ease of property and asset management. At time of acquisition, the shopping center had approximately 40% vacancy with a number of key leases nearing their expiration. Upon taking over the asset, KBHB was able to renegotiate with existing tenants on renewed leases, and offer aggressive leasing terms for new tenants. We also secured favorable long term debt, leading to a leveraged return of over 30% annually to our investors.
