In early 2015, an affiliate of Wyatt Capital, LLC (“Wyatt”) acquired two adjacent industrial properties on Defoor Hills Road in the then emerging Upper Westside submarket. Wyatt paid $5.5 MM total for two buildings totaling approximately 100,000 square feet and promptly began the design process to convert the buildings to high end loft office product. Wyatt engaged Smith Dalia to design the project and engaged Derucki Construction as its general contractor. The design, permitting, and speculative construction project was completed by Q2 of 2017 and Wyatt promptly leased the project to 100% to 3 credit tenants under long term lease obligations at favorable economics. Wyatt implemented a marketing campaign to sell the asset in late 2017 which resulted in a trade with TH Real Estate/Nuveen Global Cities REIT (formerly known as TIAA CREF) for $382/sf which was then a sales price record for the loft office asset class in metro Atlanta. The purchase price equated to a 5.5% cap rate on current NOI.

Annualized project level returns for this investment were 35.08% with an equity multiple of 2.55X.

An affiliate of Wyatt Capital, LLC (“Wyatt”) acquired 1357 Collier Road for $4 MM in November 2017 after a very quiet and limited marketing effort by the seller. The building is a 50,000 sf brick warehouse building that had been partially converted to retail showroom use by the previous owner for her business. Wyatt arranged a short term sale leaseback with the seller and promptly leased the entire building to a regional retail showroom furniture tenant (Stock & Trade Design Co.) under a long term lease arrangement.

The initial investment thesis was to relet the building or redevelop for loft office. The new tenant lease was arranged quickly after acquisition and was the most financially accretive and risk mitigating path forward for the investment. Wyatt replaced the roof and made other minor base building improvements as part of the new lease and the tenant contributed all of it’s tenant improvements and occupied in late summer 2018. Wyatt refinanced the original debt upon occupancy by the new tenant and was able to return almost all of the original equity principal within 15 months of the original investment.

Due to the coupon cash flow and yield available under the long term lease, Wyatt formally offered the asset to the broader investor market in a defined marketing campaign that yielded a price of $9.75 MM from an institutional investor less than two years after Wyatt’s acquisition of the property.

Annualized project level returns for this investment were 103.8% with an equity multiple of 2.58X.

An affiliate of Wyatt Capital, LLC (“Wyatt”) acquired 1358-1362 Collier Road in an off market transaction in July 2017. The building is a 30,000 sf brick warehouse situated on 1.88 acres located on Collier Road in the Upper Westside submarket and is 100% leased and occupied after having previously been improved to retail showroom usage in prior years. The building had two tenants in 67% and 33% of the project with the larger tenant expiring within 18 months of Wyatt’s acquisition and without any existing renewal option rights.
The investment thesis involved acquiring the property and marking rental rates to market levels upon each tenants lease expiration and/or replacing those tenants with new tenants.

Within 15 months of acquisition, Wyatt sold the asset to an owner occupant for $6.3 MM. This investor intends to renovate and occupy the vacant space for medical usage when the larger tenant vacates the building.

Annualized project level returns for this investment were 58.33% with an equity multiple of 1.86X.

An affiliate of Wyatt Capital, LLC (“Wyatt”) acquired 2060 Defoor Hills Road (“2060”) for $1.2 MM in October 2015 in an off market transaction. The building is a 24,000 sf brick warehouse building that was then occupied by a window manufacturing tenant for its manufacturing and distribution functions. The tenant had 18 months remaining on its lease without any renewal rights. This property is located at the corner of Defoor Hills Road and Collier Road and is situated at the heart of the Upper Westside Collier Road corridor.

At that time, Wyatt was undertaking a loft office redevelopment project further down Defoor Hills Road to redevelop a two building 100,000 square foot speculative “cutting edge” loft office project and determined that acquiring 2060 was necessary as part of enhancing and curating the emerging Upper Westside geography which was in its infancy at that time. The 2060 acquisition allowed Wyatt to control the “front door” to this loft office development. Wyatt implemented an enhanced visibility strategy to allow for a public art component at 2060 on the side of the building which was previously invisible to the market. The tree removal revealed what was essentially a showcase billboard opportunity on the side of the building. Wyatt then commissioned the “Upper Westside mural project” which became a landmark art project and established an identity for the geography that previously didn’t exist – thus birthing the “Upper Westside” moniker and establishing this submarket and geography with a brand. The landmark art and visibility changed the market demand for this building – Wyatt replaced the industrial tenant upon its expired lease with a retail showroom tenant after making some base building improvements to the building and then later sold the building to an owner occupant for $5 MM in less than three years after acquisition.

Annualized project level returns for this investment were 210.95% with an equity multiple of 2.64X.

An affiliate of Wyatt Capital, LLC (“Wyatt”) acquired 1483 Chattahoochee Avenue in August 2017 for $3.2 MM in an off market transaction. The building is a 20,000 sf brick warehouse situated on 2 acres located on the pin corner of Collier Road and Chattahoochee Avenue in the Upper Westside submarket and provides a 4/1000 parking ratio. The building had been previously converted years earlier from its original distribution warehouse use to retail showroom space. The building was 100% leased and occupied by recession era tenants who were paying drastically below current market rates with very minimal lease term remaining and without any renewal option rights in their leases.

The investment thesis was to acquire the property with the intent to mark to market the existing tenant’s leases upon each lease expiration and/or replace those tenants with new tenants and relet the property at market rates. The thesis included a budget for base building improvements (inclusive of a public art project on a highly visible retaining wall at the intersection) to improve and enhance the curb appeal of the asset and attract new tenants at higher rates.

Within less than 2 years after acquisition and prior to any substantial further investment, Wyatt sold the building to an institutional investor for $5 MM.

Annualized project level returns for this investment were 27.75% with an equity multiple of 1.67X.

Affiliates of Wyatt Capital, LLC (“Wyatt) acquired a 33 acre parcel of retail land in North Forsyth County for $1.4 MM in an all cash transaction in July 2014 from a financial institution. The property was a distressed land sale after a foreclosure by the bank on the previous property owner. The property was in rough graded condition located at a traffic lighted pin corner with over 1,000 feet of frontage on Georgia Interstate 400 with multiple existing curb cuts in place providing access to the property. Wyatt held the property until July 2019 when it sold the property for $4.1 MM to a brand name user that plans to develop a heavy equipment dealership and maintenance facility on site.

Annualized project level returns for this investment were 13.91% with an equity multiple of 1.91X.

Affiliates of Wyatt Capital, LLC (“Wyatt”) acquired a 4,300 square foot office building for $115/sf from a financial institution in a distressed asset sale in July 2012 and promptly completed a full renovation of the 3 story building and immediately leased the two vacant floors while Wyatt Capital occupied the remaining floor. Wyatt sold the asset to an owner occupant in November 2017 for more than $300/sf.

An affiliate entity of Wyatt Capital sold this 40,000 square foot medical office asset to MB Real Estate Investors based in Chicago, IL in December 2014 for $6.3MM.

Wyatt acquired this asset for $3.1MM in December 2012 from a regional lender who had previously foreclosed on the asset. The property was less than 50% occupied at acquisition although Children’s Healthcare of Atlanta (“CHOA”) had committed to lease the balance of the vacant space in the building as of closing.

During the 2 year hold period for this investment, Wyatt addressed numerous deferred maintenance items including replacement of the cooling tower, various other HVAC improvements, roof repairs, parking lot resurfacing, etc. Additionally, CHOA restructured its lease to extend its term and secure its longer term tenancy at this location at a favorable lease rate.

Total return on equity for the holding period of this asset exceeded 400%.

The site is an entire city block that was improved with two warehouse buildings near the Atlanta Beltline & Ponce City Market in Old 4th Ward.

A Wyatt Capital affiliate entity acquired 1.9 acres in the Old 4th Ward in April 2013 from an owner occupant who leased back 100% of the property for 18 months. The site was an entire city block that is improved with two warehouse buildings totaling 32,000 square feet and is in very close proximity to the popular Atlanta Beltline, Ponce City Market, and the Old 4th Ward public park. The investment thesis was supported by the favorable land basis, redevelopment potential for the site, the credit leaseback structure during the hold period, and rapidly improving demographics occurring in this “in town” market.

After a hold period of 18 months, the asset was sold in November 2014 to a national home-builder for a residential development project on the site. The sale provided a total return to Wyatt Capital limited partner investors of approximately 147%.

A 60 unit apartment complex in Buckhead

An affiliate of Wyatt Capital acquired this 60 unit apartment asset in August 2010 from one of the largest apartment REIT’s in the U.S., AIMCO, for $3 Million. The asset was constructed in 1987 and is located on 1.486 acres in a superior neighborhood and location in Buckhead. The investment was made due to a motivated seller and the potential for increase in renter and investor demand for this asset class; especially for “in town” locations. Wyatt refinanced the asset in July 2012 at a higher valuation and lowered its debt service obligation during a historically low interest rate environment. The asset remained virtually 100% occupied since acquisition.

The asset was sold in September 2014 for $4.6 Million. The overall investment provided an annualized return of better than 40% to the investors.

DEFOORS FERRY ROAD LAND ASSEMBLAGE INVESTMENT

An affiliate entity of Wyatt Capital, LLC (“Wyatt”) assembled four parcels totaling approximately 1.76 acres in three separate transactions between 2006 and 2008. The site is located between Midtown and Buckhead in the southern portion of the Buckhead submarket in a neighborhood commercial corridor in the Morris Brandon School district. The first two parcels were acquired in 2006 from the Piedmont Hospital Foundation and included a functionally obsolete structure formerly occupied by a day care center (that was subsequently demolished after the acquisition) on approximately 1.15 acres. The third and fourth contiguous parcels totaled .61 acres were acquired separately from two individual owners and included a raw vacant piece of land and one residential structure on the site. The entire site was designated for low density commercial development by the City of Atlanta’s long term land use plan which provided flexibility on what the site could be developed as which provided for many options when considering an exit of the investment. A residential townhome developer rezoned and acquired the site from Wyatt in August, 2013. This investment is a good example of Wyatt’s defensive underwriting practices and discipline given that the site was acquired at the peak of the market yet still provided a very satisfactory double digit return (annualized) to ownership.

PINE HILLS APARTMENTS – 48 Unit apartment renovation
SMYRNA, GEORGIA

Wyatt Capital affiliates acquired a 48 unit Class C apartment asset in September 2012 and promptly commenced a renovation of the entire property which concluded in spring 2013. The investment was made due to the ability to acquire a “broken” asset at a favorable price in a great Cobb county neighborhood location with excellent access. Dynamics in this market supported a multi-family investment given that supply was decreasing due to local municipality decisions to acquire and demolish multi-family assets and further prohibit entitlement of sites for new multi-family construction resulting in a substantial supply/demand imbalance. Wyatt’s team acquired, renovated, leased, and then sold the asset to an out of state investor in November 2013 after a 15 month hold period at a 69% return to Wyatt Capital and its investment partners

Retail Real Estate Investment
Charleston, South Carolina

Wyatt Capital Flips 2,300 Square Foot Former Bank Branch to a Local 1031 Investor

Wyatt Capital assigned its contract and closed in February 2013 on a 2,300 square foot former bank branch formerly owned and occupied by Heritage Trust Credit Union. The property was placed under contract by Wyatt Capital in late November 2012 along with an extended due diligence period and a motivated investor purchased the property at a 1.23 x multiple above Wyatt’s contract price. The property is located in Mt. Pleasant, South Carolina with frontage on Highway 17 and south of the intersection of I-526 and Hwy. 17. The property is in a high traffic retail and hospital corridor with great access and visibility. Wyatt Capital was attracted to the real estate due to being able to purchase the property “off market”, the active real estate market in Mt. Pleasant, and having an extended period for due diligence. Wyatt Capital had no capital at risk during this transaction.