Property Details
Stabilized Income  Below Market Rents  NOI Growth  Repeat Sponsor 
Asset Profile
Core Plus

77 Sugar Creek

Sugar Land, TX

Office Property
Northstar Commercial Partners Denver, CO
Northstar Commercial Partners
  • IRR 18.2%
  • Equity Multiple 1.59x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7.5%
  • Stabilized Cash on Cash 12.2% in Y2
  • First Distribution Mar 2020
  • Distribution Frequency Quarterly
  • Asset Profile Core Plus
  • Loan-to-Value 68%
  • Current Occupancy 91%

About this Property

Why This Property?

Danny Mulcahy, Northstar Commercial Partners: "The cardinal rules of real estate are what we are taking advantage of in our acquisition of 77 Sugar Creek Center:

  • Location, Location, Location and Cash Flow, Cash Flow, Cash Flow.
  • This property is a highly desirable Class A office building in one of Houston's most desired sub-markets.
  • This is an opportunity to receive +/- 9%(avg) annual distributions, paid quarterly and an overall return of +/-18%IRR by co-investing alongside Northstar Commercial Partners in their acquisition of a 143,000 SF Class B+ office building in one of Houston's most upscale suburbs, Sugar Land, TX."



Why Do You Like This Strategy?

Danny Mulcahy, Northstar Commercial Partners: "Typically, the simpler you can keep your strategy the better. This is an asset in a highly desirable, upscale community outside of Houston, TX and is a simple mark to market opportunity. The property has a good mix of tenants, decent schedule of lease expirations, has demonstrated over the last year its ability to command higher rents from existing and new tenants, is well below market rents and has limited competition. With limited competition and good timing as it relates to the office market cycle in Houston we feel strongly we have an asset worth pursuing.

Even if our assumptions for absorption or lease rates are incorrect, it’s unlikely the average cash on cash drops below 6%, so, on a risk adjusted basis this is a hard deal to find fault with."

 

How Are You Mitigating Risks?

Danny Mulcahy, Northstar Commercial Partners: "The short answer is: Buying it right, nominal debt, conservative absorption schedule, conservative exit cap assumptions. We have conducted extensive tenant interviews and have a good understanding of the intentions of the tenants. We have deep experience in the market, conducted our own market study and feel very good about our assumptions. We can go to 67% leased and still cover our expenses."

About this Property

Why This Property?

Danny Mulcahy, Northstar Commercial Partners: "The cardinal rules of real estate are what we are taking advantage of in our acquisition of 77 Sugar Creek Center:

  • Location, Location, Location and Cash Flow, Cash Flow, Cash Flow.
  • This property is a highly desirable Class A office building in one of Houston's most desired sub-markets.
  • This is an opportunity to receive +/- 9%(avg) annual distributions, paid quarterly and an overall return of +/-18%IRR by co-investing alongside Northstar Commercial Partners in their acquisition of a 143,000 SF Class B+ office building in one of Houston's most upscale suburbs, Sugar Land, TX."



Why Do You Like This Strategy?

Danny Mulcahy, Northstar Commercial Partners: "Typically, the simpler you can keep your strategy the better. This is an asset in a highly desirable, upscale community outside of Houston, TX and is a simple mark to market opportunity. The property has a good mix of tenants, decent schedule of lease expirations, has demonstrated over the last year its ability to command higher rents from existing and new tenants, is well below market rents and has limited competition. With limited competition and good timing as it relates to the office market cycle in Houston we feel strongly we have an asset worth pursuing.

Even if our assumptions for absorption or lease rates are incorrect, it’s unlikely the average cash on cash drops below 6%, so, on a risk adjusted basis this is a hard deal to find fault with."

 

How Are You Mitigating Risks?

Danny Mulcahy, Northstar Commercial Partners: "The short answer is: Buying it right, nominal debt, conservative absorption schedule, conservative exit cap assumptions. We have conducted extensive tenant interviews and have a good understanding of the intentions of the tenants. We have deep experience in the market, conducted our own market study and feel very good about our assumptions. We can go to 67% leased and still cover our expenses."

Offered By

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Assets Under
Management

Currently
$1.3B 20+ assets
Exited
$310MM 50+ assets
Portfolio LTV
60%  
Historical
Realized Returns

Total IRR
20%  
Equity Multiple
1.3x  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
19 years  
Size
35 Staff * Dedicated investor relations
* All information is reported by Northstar Commercial Partners as of 6/3/2019.
Assets Under
Management

Currently
$1.3B 20+ assets
Exited
$310MM 50+ assets
Portfolio LTV
60%  
Historical
Returns

Total IRR
20%  
Equity Multiple
1.3x  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
19 years  
Size
35 Staff * Dedicated investor relations
* All information is reported by Northstar Commercial Partners as of 6/3/2019.

Financials

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Offering Financial

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Diligence Preview

Location Details

Sugar Land, TX

Premier location in one of the most upscale and high demand communities in Houston.

Documents

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Offering Agreement Documents

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