Our investment strategies include the whole spectrum of real estate opportunities — from a single property to complete operating companies.
- Company Recapitalization
Recapitalized the sixth largest tax credit housing owner/developer.
- California Office Acquisition
California Class A Office purchases prior to resurgent demand.
- Public-Private Development
Development of major mixed-use center in partnership with the city.
Launch of new homebuilder from single development, ultimately sold to public homebuilder.
- Portfolio Purchase & Immediate Disposition
Purchase of a 17-asset corporate owned portfolio.
- Bankruptcy Acquisition & Reposition
Consolidated fragmented ownership of the iconic Kaiser Center in Oakland, CA.
- Lender Liquidation
Led a lender buyout and participant venture.
- First to Build
Acquisiton of office development sites just prior to demand surge.
- Retail Portfolio Accumulation
Acquistion of 21 grocery-anchored centers in 14 months.
Recapitalized the sixth largest tax credit housing owner/developer.INVESTMENT: 2011STATUS: ACTIVE
Highridge successfully recapitalized the sixth largest Affordable Housing Owner in the United States. The recapitalized company was renamed Highridge Costa Investors, and is among the nation's leading developers of LIHTC tax credit multi-family housing, having developed and/or syndicated 26,000 units throughout the United States. Highridge identified the opportunity as a market leading company that was experiencing difficulty trying to recapitalize after a management buyout. Highridge was able to complete a workout and bring in new capital to re-energize a great organization.
26,000 units, in 275 projects
34 states, 50% of the properties are in California
California Office Acquisition
California Class A Office Purchases prior to resurgent demand.ACQUIRED: 2009
As the California Office market and debt markets froze in 2009, Highridge seized on the opportunity to acquire 3 well located Class A office assets in California that fit the following four criteria: (1) located in institutional markets, (2) cost less than 50% of replacement value, (3) leasable in the current market, and (4) can be repositioned as an institutional quality asset.
To ensure success, Highridge set up an acquisition and due diligence team that positioned Highridge to execute an all equity close within a week of an accepted offer, bringing certainty and reliability to the broker community and sellers in the market.
246,000 sq. ft, 182,000 sq. ft., 191,000 sq. ft.
Orange County and San Francisco, CA
Daly City, California
Development of major mixed-use center in partnership with city.ACQUIRED: 1998SOLD: 2004
In 1998, the Daly City Redevelopment Agency entered into a DDA with Highridge Partners' subsidiary, Summit Commercial, and Mack-Cali Realty Corporation to develop Pacific Plaza in Daly City. The site is adjacent to the well-utilized Bay Area train system (BART) and is a major mixed-use destination in the city today.
The project was so well received that it was awarded Best Redevelopment Project of the Year by the CRA in 2003. This is an excellent example of how Highridge is able to successfully work with civic organizations in a public-private partnership.AWARDS
California Redevelopment Association
“2003 Project of the Year”
Mixed-use (365,000 sq. ft. office, 100,000 sq. ft. retail) development with the Daly City Redevelopment Agency.
Mack-Cali Realty, Lehman Brothers
Genesys, Digidesign, U.S. Federal Government, Century Theatres
Launch of new homebuilder from single development, ultimately sold to public homebuilder.FIRST SUBDIVISION: 1993SOLD COMPANY: 2002
In 1993, as the California economy started its recovery, Highridge pinpointed a resurging demand for entry-level homes and launched a new homebuilding company. Within seven years, they directed an aggressive statewide expansion which propelled the company to become the sixth largest in California.
Portfolio Purchase &
Purchase of 17-asset, corporate-owned portfolio.ACQUIRED: 1994SOLD: 1997
California was in a recession. Highridge's strategy underlying this acquisition considered the break-up value of this portfolio substantially higher than its purchase price in bulk. Highridge sold the 17 properties over a 33-month period.
The portfolio purchased included 17 properties in prime California locations, including four in the financial district of San Francisco, six in the San Francisco East Bay cities of Pleasanton and San Ramon, one in downtown Los Angeles, and three development sites in other parts of California.
17 prime California locations
ING, Blackacre Capital and Farallon
American Airlines, KPMG, Cal Fed, Pacific Stock Exchange, AT&T, Frito-Lay, Merrill Lynch, PepsiCo, Quaker Oats, GE & Chrysler Credit
“Deal of the Year 2003” for BART Office Lease
“Deal of the Year 2003” for Office Purchase
“Deal of the Year 2005” for Office Sale
Bankruptcy Acquisition & Reposition
Consolidated fragmented ownership of the iconic Kaiser Center.ACQUIRED: 2003SOLD: 2005
In 1983, Kaiser Aluminium & Chemical Corporation entered into a tax-oriented sale/leaseback transaction, allowing it to lease and operate the Kaiser Center property without fee ownership. In February 2002, Kaiser entered into bankruptcy proceedings. Highridge purchased the various layers of ownership, collapsed the multi-layer structure, and purchased the fee interest in the property. At acquisition, Kaiser Center was approximately 60% leased with substantial deferred maintenance.
Highridge leased the property, including 317,000 sq. ft. to BART. The property renovation was completed and the property was sold within 27 months of the purchase.
913,000 sq. ft., 28-story Class A high-rise office
BART, University of California Regents, California Bank & Trust, Kaiser Foundation Health Plan
Led a lender buyout and participant venture.ACQUIRED: JULY 1995SOLD: JULY 1996
A development company had just emerged from bankruptcy. 100 Broadway was approximately 70% leased with debt that exceeded its value. The lead lender wanted to sell its piece of the loan, but the participating lender would not take a discount. In July 1995, Summit Commercial (Highridge Partners' commercial subsidiary) purchased the lead lender's loan and formed a venture with the participating lender. Within 12 months, Summit leased the property and sold it.
194,500 sq.ft., 6-story Class A office building and seven-level parking structure.
USX & BlackRock
Earth Technology, Inchscape, GSA-Social Security, Pacific Maritime Assoc.
First to Build
Acquisition of office development sites just prior to demand surge.ACQUIRED: 1999SOLD: 2001
In mid-1997 a Highridge company began acquiring entitled office sites in “back office” markets of major California cities. The goal was to be the first to build on a speculative basis in sub-markets frequented by major credit tenants. Over 1.5 million square feet of office was built, leased and sold.
Five projects built in three years. 1.5 million total sq.ft.
Boeing Satellite Systems, Regus Business Center, Sierra Systems, Lexmark, BroadVision
Retail Portfolio Accumulation
Acquisition of 21 grocery-anchored centers in 14 months.ACQUIRED: 1996 - 1997 SOLD: 1997
1996 was a year in which California grocery-anchored retail was trading at historically high capicity rates, as retail sellers were climbing out of the recession. Beginning in October of 1996, Highridge acquired 21 grocery-anchored centers in 14 months and sold 20 of them in a portfolio sale to a retail REIT in December of 1997.
21 grocery-anchored Class A community retail centers, totaling 2,815,000 sq. ft.
Blackacre Capital Management
Ralph's, Lucky, Food 4 Less, Home Depot, Raley's