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9/18/15
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HG Capital and its operating partner, Hibernia Capital Advisors, sold a 52k sf self-storage facility in Tempe, AZ for $6.7 mil, or $129/sf. The partnership acquired what was at the time an under-managed asset back in September of 2012.
The venture made the investment with the strategy of enhancing the property's cash flow through renovation and intensive management. Upgrades included a renovated office, improvements to the parking lot, energy efficient lighting, and new signage.
The asset had strong revenue and income growth while its value grew significantly. As of April 2015, the property was approximately 90% leased. “We were pleased with the physical improvements to the asset, which contributed to the improved financial performance and ultimately a profitable sale,” says Andrew Jobst, Partner at HG Capital.
This was HG Capital's first investment with the local operating partner after cultivating a relationship with the firm over several years. HG Capital's established trust and long term relationship with Hibernia Capital Advisors along with HG Capital's familiarity with this specialty real estate sector made this successful investment possible.
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