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Realized Deal : Northwoods Business Center

Sponsored By Avistone

Risk Profile
Value-Add
Amount Invested
$50,000
Targeted IRR
20.6%
Actual IRR*
25%
Targeted Equity Multiple
1.72x
Actual Equity Multiple*
1.74x
Targeted Hold Period
3.0 years
Actual Hold Period
2.5 years

In August 2017, Avistone launched an offering for a 110,343 square foot, multi-tenant, flex industrial property comprised of three buildings and located in the city of Peachtree Corners (Atlanta), Georgia. Avistone’s business plan called for creation of significant value via conversion of the property’s existing 34,800 square feet of vacant/rolling flex space to creative office, modernization/rebranding of the property, and subsequent lease-up. Avistone intended to execute the proposed immediate renovations within the first six to nine months after acquisition, subsequently deploy Avistone’s senior Atlanta-based property manager to facilitate renovation/lease-up, and utilize the property’s existing leasing broker who successfully leased up nearby converted properties in a very short time frame.

Project Timeline

Smooth Transition

December 2017

Avistone reported that post-acquisition the property management and accounting was successfully transitioned to the new ownership. Good progress had also been made on initiating much of the value-add capital improvement program, with work having commenced both within the interior and on the exterior of the property. The building exterior was painted and most of the minor lender-required exterior work had been completed. The demo on the Phase 1 upgraded market-ready work was also completed and Avistone anticipated completion of the work to these initial suites at the end of Q1 2018.

Improvement Work Complete

September 2018

Avistone reported that it had completed the exterior property improvements and rebranded the property as The Green at Northwoods to reflect the enhanced property look and feel. Additionally, Avistone’s senior leadership hosted a broker event to showcase the updated exterior and interior improvements and received very good attendance and brokerage feedback. Since the event, leasing traffic had increased substantially, resulting in one new lease in Q4, as well as several deals under varying stages of negotiation.

Sale

March 2020

By the end of Q4 2019, the property was over 80% occupied with good leasing activity reported on the vacant units. Although Avistone was not in the market to sell the property, an opportunistic exit scenario presented itself and Avistone decided to sell the asset as part of a larger portfolio sale. The sale transaction was officially completed in March 2020.

Final Outcome

Good business plan execution and favorable market conditions led to an opportunistic exit opportunity which allowed Avistone to achieve higher-than-projected returns for investors.

*Net of fees

This report contains explanations of a series of events associated with Avistone’s Northwoods Business Center offering that resulted in an approximate 74% (net of fees) absolute return on original equity to investors (including those from the CrowdStreet Marketplace). Certain aspects of the report such as dates of major events and the final outcome are easily verifiable while others, particularly underlying reasons behind the sponsor’s business plan execution, are not.

The report partially relies upon the sponsor’s explanations, the information contained within sponsor-produced quarterly reports, and conference calls. This analysis is not an assertion of independently verified facts but, rather, is for informational purposes only, to convey CrowdStreet’s understanding of what transpired.

CrowdStreet makes no representation or warranty, express or implied, in relation to the fairness, accuracy, correctness, completeness, or reliability of the information contained in this report. CrowdStreet does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it.

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