When Rockspring announced its first property exit, the
company knew it would provide a hefty profit for its Canadian
investment partners over a relatively short seven-month hold.
What wasn’t realized at the time, however, was the buyer of
the property, the international grocer Whole Foods, would win
the 2015 “Best Real Estate Deal of the Year Award” in retail
for its part in the transaction. This award was presented
on January 26, 2016 by the Houston Business Journal at a
special ceremony. Members of its newsroom and the business
community carefully chose the selections.
The four acre covered land play (underlying land value
currently generating cash flow from a building lease) is located
just four miles from downtown Houston at the heavily travelled
intersection of I-610 and Yale St. The property was acquired in
November 2014 from an out of state owner that was looking to
sell the property quickly. Rockspring recognized the potential
of the site and neighborhood as it was transitioning from an
older industrial part of the city to more urban, higher-end retail
and residential uses.
The plan was to hold for 24 – 36 months while the area
continued to transition and collect the cash flows from the
building lease. Approximately seven months after acquiring,
Rockspring sold to Whole Foods as they also came to
recognize the improving demographics of the submarket and
are now planning to build their first Market 365, a new concept
store geared for urban millennials.
Travis Stel, Managing Director of Two Degrees Advisory
Group, added, “With the success of this first property exit, it
shows the management team is off to a great start in executing
on its business plan.”
While Rockspring was pleased that Whole Foods was
recognized for their “vision” to select this neighborhood for
their store, they were more pleased that their investors and
investment partners were able to profit from Rockspring’s local
market knowledge to identify investment opportunities well
ahead of others.
Rockspring continues to look diligently throughout our
markets for similar opportunities and appreciate our financial
partner’s continued support and valued partnerships.
For more information contact:
Jim Hynes, Managing Director, Rockspring Capital
PRIVATE CAPITAL DEAL NEWS Rockspring’s First Property Exit
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