This Trophy iconic 2.3M SF tower was acquired in 2014 in a joint venture limited partnership role with the legendary 601 West Companies portfolio of trophy assets. With a recovering US real estate climate, along with some major risk factors as; some anchor tenants renewal coming due at the time of acquisition, along with a annual stable minimal short term returns, The long term tremendous upside, makes this a prime example of the type of projects the Jeremias Family has been investing in over the years.
Deal was acquired in 2014 as a repositioning it into a class A office building that will include a value add opportunity to a 3X multiple on investment wihin one of the premiere US markets. Since completing the acquisition in late 2012 the sponsor has started on a major repositioning of this asset as a premier TAMI tenant desired building within the Washington DC market. Total office space: 630,000 sf
Within ten days of closing on 550 West Jackson Avenue (which was 90% occupied at the time), a diversified-financial service tenant with a market cap of several billion dolalrs, which had occupied 40% of the property had been paying half of the revenues of the property, filed for bankruptcy protection due to a massive fraud perpetrated by its CEO and CFO alone. Confronted by the daunting prospect of extraordinary operating losses of $5 million annually, which were based upon a then half-empty building, as well as the almost certain default on its mortgage. Debt was restructured and lowered, a preferred equity partner willing to accrue its return was found, and fresh equity funds to pay for the new leasing costs to lease theat recently vacated half of the building were resolved. By setting these goals and successfully achieving them, today the property is fully occupied, a significant positive cash flow from quality tenants in place with long-term leases, and distributions are set to begin.
Located in the heart of downtown Louisville, Kentucky, the Aegon Center is a 633,650 square foot tower. Currently the Aegon Center is one of Harch Group’s most premiere investments in a major US market far outperforming its original projections. Underneath its distinct Romanesque dome that illuminates Kentucky’s skyline are 22,000 square feet of retail amenities and a six-level garage. In 2006, the Jeremias Family Partnership and a group of syndicate investors acquired this trophy asset with a long-term strategy hold in The Harch Group's portfolio.
Located in the heart of Saint Louis, Missouri, Metropolitan Square is a one million square foot building. Metropolitan Square is one of Harch Group’s most premiere investments in a major US market far outperforming its original projections. The Jeremias Family Partnership and a group of syndicate investors acquired this trophy asset for approximately $165M with a long-term strategy hold in The Harch Group's portfolio.
Prior to the founding of The Harch Group, in August 1998, the Jeremias Family Holding was involved in successfully acquired this 2.3 million square foot manufacturing warehouse with its unique, landmarked architectural design. The building had substantial vacancies (40%) and very sizeable operating losses. Harry oversaw close to 1 million square feet of construction for this landmark between 2003-2004. Today, the property has been converted into the epicenter for the gentrification and rehabilitation of the entire West Chelsea neighborhood, with world-renowned tenants in the media and design industries. The property was refinanced twice within five years of acquisition. In late 2011, the partnership successfully sold out for $976 million to RXR Fund. With the property 98% occupied, rents average over $30 per square foot.
Acquired in 2007 as a vacant 175,000 square foot industrial building, $25 million was invested to reposition the building with new windows, electrical risers, façade, lobby and common areas. The jewel of this building was creating a sprawling 15,000 square foot retail component that is now the US headquarters of Red Bull Energy Drink. 218 W 18th Street is today considered an elite address among its many creative / innovative technology and media tenants. This project went through its own share of financial challenges during the last real estate downturn, and in 2011 The Harch Group repositioned its debt and equity with a 3-way joint venture along with Atlas Capital Group and Green Oak Partners to stabilize and fully lease out its entire building. In 2013, the joined venture sold the project to ARC (American Realty Capital) for a tremendously successful exit.
Acquired in 2011, the approximately 113,000 square feet of retail and commercial portion of the renowned Setai downtown Manhattan project. The all-equity/no debt ~$18M acquisition and closing took place in less than 30 days as part of the repositioning and liquidation of the Anglo-Irish debt from the previous development team. Within its original strategy of this short term hold The Harch Group successfully completed the immediate sale of the commercial portfolio to a major public REIT.
In 2004, the commercial real estate market in San Francisco was in the midst of its dramatic decline. Rental rates, which had previously topped $100 per square foot were now in the $30-$40 range. The total of the purchase price and capital raise was approximately $850,000,000. As the market began to improve soon thereafter, the acquisition team was signing leases at $60-70 per square foot. Because of its exceptional ability, the property was sold within two years of acquisition and achieved a 150% return on its partners’ investment.
In 1998, the Jeremias Family acquired 175,000 square feet of this Class “A” office building in the prominent East Side of Manhattan for approximately $19M. At the time of acquisition, 801 Second Avenue was at a 30% vacancy. As Harry’s first major asset management project as General Manager of the assets, he was able to cut 42% of the operating costs and bring the occupancy to a full 100%. In 2002, 801 Second Avenue was sold for $39M, kicking off The Harch Group’s success in its diverse and extensive portfolio.
In 2010, the Harch Group in part with a joint venture of a syndicate of investors, acquired a majority stake of a ground lease interest of ~1 million square foot office tower which is currently owned by UBS as a long term investment opportunity at a way below market rate. The acquisition strategy was a long-term hold of this stable and secure investment, with a moderate short term return and highly successful long-term play. In 2012, the JV sold its entire interest at a few hundred percent return on equity.
This 331,000 square foot property was acquired in a joint venture between The Harch Group and a syndicate of private real estate families for approximately $156 million. Its original business plan was for a long-term trophy portfolio hold. In 2011, the property was sold to INVESCO, the largest real estate holder in the United States, with returns of investment at over 39% annually from the date of acquisition.