RealtyShares recently exited from an industrial property—a year head of our target.
For the investment, we partnered with Novaya Real Estate Ventures
, an established Boston-based operator of commercial real estate throughout New England. The property was located at 1 Distribution Center Circle in Littleton, Massachusetts. (article continues below)
A Great Partner, A Great Location
Located thirty miles outside of Boston, the property was purchased by Novaya in December 2016 for $41.3 million. In April 2017, a group of RealtyShares investors placed $1.5 million in a recapitalization opportunity, and the asset sold in June 2018 for $51.3 million—almost a year ahead of plan.
“RealtyShares was drawn to this investment opportunity due to the property’s exceptional condition, its proximity to Boston, and the track record of the operating partner Novaya,” said Bryan Schultz, Vice President at RealtyShares.
“RealtyShares was drawn to this investment opportunity due to the property’s exceptional condition, its proximity to Boston, and the track record of the operating partner Novaya.”
“We’re happy to have played a part in this project,” he continued, “and we look forward to working with Novaya on additional investments throughout New England.”
Increased Occupancy and Improved Cash Flows
At the time of RealtyShares’ investment, the 480,000 square foot distribution facility was 88% occupied. Novaya pursued a value-add strategy and succeeded in bringing the property up to 100% occupancy after six months of operations.
During the course of the investment period, the asset’s net operating income increased 118%. The property was sold to an institutional buyer seeking to acquire a core asset with full occupancy. (article continues below)
During the course of the investment period, the asset’s net operating income increased 118%.
“We were thankful to have the experienced team at RealtyShares as a partner on this deal,” said Novaya Principal James Alden.
“The brevity and flexibility with which RealtyShares was able to provide the capital we needed helped enable us to execute on our business plan and exit in a timely fashion.”
New England Distribution Center marks the first project completed by Novaya with RealtyShares. Novaya reports having acquired more than $500 million in assets since 2012 and having sold more than $70 million in the same period. The company primarily focuses on industrial, office and retail assets throughout the New England region.
Please note that past performance is not indicative of future results. Investments on the RealtyShares platform are private placements that are subject to less regulatory oversight and review than traditional public securities. Investments in private placements are illiquid and subject to the risk of complete loss of capital. Consult with a financial advisor, attorney, accountant, and any other professional to understand and assess the risks associated with any investment opportunity.