Corporate Overview
Scope of Services
Properties
Build-To-Suits
Current Strategy
Current News & Projects
Investment Opportunities
Performance · Commitment · Integrity · Experience
Current Strategy
Current Market Conditions: The current economic malaise, the significant restriction of capital, and undefined and currently ineffective government intervention have placed a downward pressure on real estate values. At this point, transaction volume is limited due to the disconnect generated by the spread between the bid and the ask, or the difference between the buyers expectation of price and the price at which a seller is willing to sell.
Triad's Opportunistic Acquisition Track Record: Triad successfully implemented an effective and profitable strategy during a similar economic environment, the government bailout of the savings and loans via the Resolution Trust Corporation.
From Texas to Florida to Georgia to Tennessee to Oklahoma, Triad Properties acquired 14 office buildings representing 1,755,269 square feet, at a significant discount-to-replacement value, when the government's Resolution Trust Corporation bailed out the Savings and Loan industry.
Triad's Current Plans: The Resolution Trust Corporation (RTC) bailout pales in comparison to the amount of current dollars already committed by Congress in the 2008 bailout. Triad is planning to replicate its previous successes by implementing a strategy that is designed in light of today's economic realities.
Targeted Sectors: Although commercial real estate asset values may not decrease in proportion to that seen in the financial sector, commercial real estate values are expected to trend downward, and as the government's intervention unfolds, Triad's strategy is to:
1) Acquire at a Discount to Replacement Cost Value. Secure institutional and individual capital to acquire a geographically diversified portfolio of properties at a discount-to-replacement value.
2) Self-Storage: A Recession Resilient Asset Class. Acquire and develop a geographically diversified portfolio of self-storage facilities since this sector has proven to be quite resilient during recessionary periods.
3) Medical Office Buildings: A Recession Resilient Asset
Class. Acquire and develop medical office buildings on or near existing
hospital campuses since, as the population continues to age, the demand
for medical office is expanding at a rapid rate. Again, the medical office
building sector has proven to be recession resilent.
Programmatic Strategic Investment Initiative
Objective: To leverage the basic dislocation in our cyclical and inherently inefficient industry by forming a value-added venture with investors to build and assemble a self-storage, medical office, and office building portfolio to be positioned as stabilized, fully-developed core assets by:
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Acquiring a platform of stabilized assets, at a discount-to-replacement value, with a focus on properties with adjacent development capacity,
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Acquiring pre-stabilized or value-added assets to be repositioned as the market recovers,
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Leveraging our brokerage base to source opportunistic projects that are due to be refinanced without the availability of debt capital, and by
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Developing the adjacent sites included in the platform on a build-to-suit or speculative basis as the market warrants.
Properties to be located in select, historically high growth areas where the stabilized cash yield of the re-positioned and fully developed portfolio significantly exceeds the venture's cost of capital to provide the owners with a consistent and exceptional yield.
A dislocation in the capital markets and Triad's proven methodology and track record for sourcing proprietary investments, will differentiate and allow the venture to execute its strategy, construct the platform, and position the value-added portfolio to generate exceptional returns.
Favorable Investment Environment: The economic malaise of the US economy and today's volatile, uncertain, inefficient and constrained capital markets, have led to a reduction in capital allocated to the real estate sector resulting in a decline in property values and ultimately resulting in reduced or side-lined competition.
In additional, numerous owners are currently pressured to liquidate assets at a discount because of the pressures generated by current debt maturities, lenders' inability or inclination not to renew existing loans, and few new sources of debt capital are available.
The declining interest rate environment, increased loan spreads, lack of availability of patient capital and the difference between the bid and asking price for properties will provide a catalyst to allow the fund to effectively execute its arbitrage and investment strategy to buy certain distressed assets, including strategic parcels of development land, with near-term debt maturities
Relationship-Based Deal Flow: A key point of differentiation for Triad is its success in sourcing exclusive investment opportunities. Triad's long term approach to creating and cultivating an extensive network of strategic relationships with some of the nations' premier real estate firms has positioned Triad to enjoy a distinct competitive advantage by providing access to unparalleled proprietary deal flow. Instead of seeking out widely marketed assets, Triad has excelled by focusing on privately negotiated and less competitive transactions where it holds a strategic or competitive advantage. In addition to these traditional sources, Triad's strong relationships with senior management and principals of regional and local real estate operating companies enhance its proprietary deal sourcing capability.
Historically, Triad has leveraged its capabilities and enhanced its investment returns by capitalizing on the infrastructure, market knowledge, and operating expertise of its comprehensive network of valued relationships in the Atlanta, Dallas, Nashville, Orlando, and Memphis markets, to name a few. To successfully build a strategically positioned industrial platform, Triad will continue to foster and expand these existing relationships that offer geographic focus, critical market knowledge, and superior access to proprietary industrial acquisition and development transactions.
Targeted Asset Class: To provide superior returns, the venture will target prices of $5-$15 million for self-storage, medical office and office buildings acquisition and development transactions, since institutions and larger funds facing pressure to place more significant amounts of capital tend to overlook these medium size opportunities. Further, through selective purchasing, Triad will focus on asset acquisitions at a discount to replacement value and opportunistic and value-add assets that are pre-stabilized, functionally-designed, institutional-quality, with adjacent development sites, that are strategically positioned to provide superior access within their respective submarkets.
Triad anticipates that the financial pressures resulting from near-term loan maturities with limited sources to provide capital to retire the scheduled debt repayment will provide an increasing opportunity to acquire high quality, well-positioned, and attractively priced, self-storage, medical office and office building properties and development sites from insufficiently capitalized owners.
Return Objectives: By incorporating 65% leverage, the venture is projected to generate consistent, risk-adjusted returns in the mid-teens to low-twenty percent. Structured to generate solid returns the with the modest risk associated with investing in hard assets, (verses the volatility of financial assets such as stocks), the venture will seek to invest in assets, over a 2-3 year timeframe, that can be monetized over a 3 to 7 year timeframe.
Triad's Financial Commitment: To launch the venture, Triad Affiliates are contributing $x.xx million, of cash or property, which represents 5% of the amount of capital targeted. If property is committed, the contribution price will meet or exceed the acquisition criteria established for the venture.
Proven Track Record: With advanced degrees, CPA and additional professional designations, and extensive experience, Triad's talented team of seasoned professionals have combined entrepreneurial spirit, institutional discipline and focused commitment to source strategic acquisition and development opportunities that meet stringent investment criteria, to structure complex and innovative transactions resulting in an enhanced competitive position, and to identify multiple exit strategies to meet or exceed yield expectations.
Triad Properties is a real estate investment and operating
company with offices in Atlanta, Huntsville, and Dallas. Since it commenced
operations in 1994, Triad has acquired/developed commercial space totaling
more than 8.0 million square feet, in 20 metropolitan sub-markets.
Today, Triad Properties' real estate services are focused on providing owners with exceptional returns and values through institutional and private transactions. As real estate markets generate imbalance and attractive investment opportunities and as the need for prudent development capital increases, Triad Properties Corporation will play a major role in creating highly innovative, soundly underwritten investments to meet the demands of prudent advisors, astute owners and informed managers.
Triad Properties Corporation ("TPC") is an Alabama corporation based in Huntsville, Alabama. TPC generally acts as asset manager and/or property manager for affiliated partnerships and joint ventures (which operate as separate legal entities in the states where they conduct business), and TPC in general does not own real estate. As used in this website, the terms "Triad" and "Triad Properties" do not refer exclusively to TPC, but, according to the context used, may refer instead to the partnerships and joint ventures that own the particular property being described, and/or to affiliated management or service companies. For more information, please contact Gerry Shannon at 256-551-1000.