Company Recapitalization

Recapitalized the sixth largest tax credit housing owner/developer.

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.

California Office Acquisition

California Class A Office Purchases prior to resurgent demand.

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.

Public-Private Development

Development of major mixed-use center in partnership with city.

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.

Homebuilder

Launch of new homebuilder from single development, ultimately sold to public homebuilder.

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 &
Immediate Disposition

Purchase of 17-asset, corporate-owned portfolio.

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.

Bankruptcy Acquisition & Reposition

Consolidated fragmented ownership of the iconic Kaiser Center.

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.

Lender Liquidation

Led a lender buyout and participant venture.

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.

First to Build

Acquisition of office development sites just prior to demand surge.

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.

Retail Portfolio Accumulation

Acquisition of 21 grocery-anchored centers in 14 months.

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.