Bridge Labs at Pegasus Park

Bridge Labs at Pegasus Park, a Flex R&D real estate investment opportunity in Dallas, TX listed on the CrowdStreet Marketplace.
Status
deal_status_icon Closed

Life science redevelopment within a thriving new biotech-focused campus in Dallas, recognized as one of the top emerging life science markets.

Location Dallas, TX
Investment Strategy Opportunistic
Property Type Flex R&D
Closed Date Aug 2023
Realized Investor IRR %
Realized Equity Multiple x
Realized Investment Period years
Investment Strategies
Core

Existing assets generally with little need for capital improvements, typically in major metros, with high occupancy, longer weighted average lease term (WALT), creditworthy tenants, and rents near or above market rate.

Core-Plus

Existing assets with typically attractive occupancy rates, but with the potential to increase cash flow or property value through light improvements, operational efficiencies, and slight increases to the amount or quality of tenants, or rental rates.

Value-Add

Projects requiring significant investment, improvement, and oversight to achieve goals, likely including interior and exterior renovations, operational efficiencies, leasing risk, increasing undervalued rents, and the likelihood of higher leverage.

Note: Designations are defined independently by CrowdStreet. These designations may differ from the offering documents or common industry designations. For more details regarding the specific strategy and objective for a particular deal, reference offering documents.

Opportunistic

Project could require heavy redevelopment, full development, or repositioning to reach its highest potential value. Other situations include distress, major tenancy issues, or other risks requiring drastic intervention from a new sponsor.

Development

Development is considered a subset of opportunistic real estate and has many moving pieces that cause these projects to be high on the risk profile. These risk factors can include pre-development risk (surveys, permitting, entitlement), vertical construction risk, arranging permanent financing, leasing, hiring property management, and so forth. 

Development deals also don't provide cash flow during the construction phase–only when the property is fully constructed and stabilized can it generate income. On the flip side, development projects often target higher targeted returns than other CRE projects.

 

Real Estate Investment Return Metrics

The Internal Rate of Return (IRR) is the rate at which each invested dollar is projected to grow for each period it is invested. It differs from other metrics in that it accounts for the concept of the “time value of money”, or the fact that a dollar received and reinvested elsewhere today is worth more than a dollar expected to be received and reinvested next year. The IRR is one of the best ways for an investor to compare various investments based on their yield while holding other variables constant.

In commercial real estate, the equity multiple is defined as the total cash distributions received from an investment, divided by the total equity invested. Essentially, it’s how much money an investor could make on their initial investment. An equity multiple less than 1.0x means you are getting back less cash than you invested. An equity multiple greater than 1.0x means you are getting back more cash than you invested. For instance, an equity multiple of 2.50x means that for every $1 invested into a CRE project, an investor could be expected to get back $2.50.

 

Equity Multiple Formula

The formula to use to calculate Equity Multiple

Equity Multiple = Total Cash Distributions / Total Equity Invested

Additional Information on Investor Return Metrics
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Sponsor Details

Other Offerings by Montgomery Street Partners
Sponsor Designation

CrowdStreet categorizes sponsors based on their experience and track record so our investors can get a sense of the firm behind the deal.

Enterprise
FIRM AGE15+ YEARS
LEADERSHIP EXPERIENCE30+ YEARS
PORTFOLIO VALUE$5 B +
  National Platform
  Ranked in the top 250 for estimated value of total holdings per Real Capital Analytics
Tenured
FIRM AGE10+ YEARS
LEADERSHIP EXPERIENCE20+ YEARS
PORTFOLIO VALUE$500 MM +
 Leadership has invested together over multiple cycles
 Dedicated investor relations and accounting staff
Seasoned
FIRM AGE5+ YEARS
LEADERSHIP EXPERIENCE10+ YEARS
PORTFOLIO VALUE$100 MM +
 Network of repeat investors
 Established banking relationships
 Affiliations with national industry associations ULI, NAOIP, CCIM, SIOR or IREM
Emerging
FIRM AGE< 5 YEARS
LEADERSHIP EXPERIENCE2-5 YEARS
PORTFOLIO VALUE< $100 MM +
 Strong leadership experience
 Experience in the proposed asset class and geographic market
 Experience in managing individual investors

Read more about the Sponsors on the Marketplace

Private equity real estate - capital stack priority  
LP EQUITY
$27,061,081 26.2%
Co-GP Equity
$5,000,000 4.8%
CPACE
$10,000,000 9.7%
SENIOR DEBT
$61,380,000 59.3%
Total
$103,441,080 100%

On the CrowdStreet platform, offerings are treated pari-passu.

Current Investment Opportunities

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Additional Resources for Flex R&D Real Estate Investors

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