Value-Add

Track Record

These case studies illustrate how we create value for our investors. They highlight how we capitalized on unique research insights, got access to off-market transactions, spotted unusual buying opportunities, and prevailed as a patient buyer not offering the highest bid.

  • 1414 Ave of the Americas
  • 636 Ave of the Americas
  • 2200 West Loop South
  • 601 West 50th Street

1414 AVENUE OF THE AMERICAS

PROJECT

  • 2005: Acquisition for $60,500,000 with $20,000,000 equity
  • APF acquired the building, uncovering seller’s time constraints for disposition during due diligence and capitalizing on the opportunity

RESULTS

  • APF leveraged its access to capital and its ability to act within 24 hours to purchase the asset at great value
  • 2007: Disposition for $120,500,000
  • Return Metrics:
    • Total Return: 400%
    • ROI (Annualized):  200%

636 AVENUE OF THE AMERICAS

PROJECT

  • Conveniently located along Sixth Avenue between Chelsea and the Flatiron District
  • 82,000-square-foot building constructed in 1915
  • Classic, turn-of-the-century architectural details remain fully intact
  • Acquired in 2004 for $29 million

RESULTS

  • Fully leased out the building
  • Annual return of more than 5% to investors during hold period
  • Sold asset for $45 million via competitive bidding

2200 WEST LOOP SOUTH, HOUSTON

PROJECT

  • In 2012, APF Properties identified Houston as high potential investment market based on population and employment growth
  • In 2013, APF Properties acquired the 200,000 SF Class A office building on a 4.2-acre lot in the desirable Galleria submarket for $37 million
  • The land alone had a market value of roughly 90% of the purchase price
  • 8.3% capitalization rate at start
  • Positioned for future growth with half of the leases at 45% below 2013 market rates and over 75% of its leases set to expire by the end of 2017
  • $21 million existing loan associated defeasance costs and equity requirement, presented a barrier to play

RESULTS

  • APF Properties secured a preferred equity investment by partnering with an institutional provider, to resolve otherwise prohibitive defeasance costs for existing $21 million mortgage
  • One year after the acquisition, property disposed for approximately $47 million, resulting in 60% return on equity investment

601 WEST 50TH STREET

PROJECT

  • 127,000-square-foot building on the far west side of Manhattan
  • APF Properties’ first acquisition, completed in 1995
  • Total acquisition cost just above $4 million, or $33 per SF
  • Acquired at significant discount to replacement cost given state of the area at the time
  • Class C building at acquisition, with several undesirable tenants including overnight storage for street food carts

RESULTS

  • Relocated or bought out all existing tenants within three years to ready for a single large tenant in an up-and-coming neighborhood
  • Amplified returns by securing a tenant who wished to lease the space with no capital improvements by landlord, completing a total renovation themselves
  • Leased to fashion brand Kenneth Cole to house their world headquarters
  • Kenneth Cole acquired the building for $24 million in 2004

Visible Value Creation

APF Properties is continuously upgrading its assets by improving their visual appeal and functionality. These following before and after photographs illustrate how we leverage capital expenditures into increased value.

24 West 57th Street lobby before and after renovations

24 West 57th Street exterior before and after renovations

25 West 45th Street lobby before and after renovations

25 West 45th Street exterior before and after renovations

28 West 44th Street lobby before and after renovations

1601 Market Street exterior before and after renovations

1601 Market Street lobby interior before and after renovations

286 Madison Avenue lobby interior before and after renovations

1156 Ave of Americas exterior before and after renovations

1156 Ave of Americas lobby before and after renovations

60 Charlton Street exterior before and after renovations