La Casita Apartments
Houston, TX
Net Rentable Area: 626 Units
Purchase Date: March 2010
Sale Date: Holding
Description:
A sprawling 626 unit project on over 15 acres, La Casita has a strong community feel with amenities including 2 soccer fields, a large playground, and an on-site YMCA. Due to problems with the previous sponsorship, the project fell into disarray and was ultimately foreclosed. The project was acquired from the lender who provided non-recourse financing.Strategy:
Significant deferred maintenance existed, thus a moderate renovation is required. The budget for the improvements is $2.5 million.
Results:
Upon completion of the renovation and successful lease-up of the project, it will be marketed for sale. We expect a hold of 2-3 years with an IRR in the mid-20's.Constellation Pointe Apartments
League City, TX
Net Rentable Area: 264 Units
Purchase Date: August 2009
Sale Date: Holding
Description:
Constellation Pointe Apartments is a 264 unit multifamily housing community in League City, Texas. Built in 1983, it is situated on Clear Lake, one of the premier recreational areas of Houston. The property has received numerous capital repairs and upgrades in the last 3 years and is in good physical condition. The community has excellent amenities including its waterfront location with 52 boat slips. Occupancy at acquisition was 92%.Strategy:
The property was purchased from a large REIT, who kept it very well maintained. However, because it was managed from outside the state, the property appears to have been operated inefficiently. Further, due to temporary stress in the capital markets, we were able to acquire the property at an unusually high yield (cap rate) of over 9%. The project would have previously traded at a yield some 200 basis points lower. We expect significant expense savings and revenue increases during the expected hold of 4 years.
Results:
The purchase was financed with a 10 year fixed loan with FNMA. Additionally, the property is being operated locally by one of the invested partners who specialize in multifamily deals. It is expected that annual cash on cash returns to investors will range from 12% to 15% and that a compounded IRR of 23% will be achieved over a 4 year hold.DFW Corporate Park
Grand Prairie, TX
Net Rentable Area: 211,000 SF
Purchase Date: December 2007
Sale Date: Holding
Description:
A 211,000 square foot multi-tenant business park; 82% leased at acquisition. The seller was a sophisticated private owner in Dallas, TX. The going-in cap rate was 7.75%.
Strategy:
The ownership had the same leasing personnel for 15 years. We believed the project needed new energy and that rents and occupancy could be increased.
Results:
We financed the purchase with a 5 year fixed (pre-payable) loan. Onsite maintenance was eliminated and service contracts were bid out. Operating expenses were reduced by $0.50 per square foot. Occupancy was increased to 87% with rents on new leases $1 - 2 per square foot higher than previous ownership. We are achieving leveraged returns in excess of 9% and are holding for cash flow. We target disposition in year 5.660 N Central Expressway
Plano, TX
Net Rentable Area: 81,000 SF
Purchase Date: June 2007
Sale Date: Holding
Description:
An 81,000 square foot Class A office building in Plano, TX, the property is well located and in good condition; 85% leased at acquisition.
Strategy:
We felt we were getting a good buy, as the actual cap rate was 8.5%. Market was likely 7.75% at that time and would have supported a sale price approximately $1,000,000 higher than we paid. Reduce operating expenses. Take advantage of the debt markets with a long term permanent loan. Hold for long term appreciation.
Results:
Eliminated onsite management, reworked the energy management system, and rebid all service contracts to reduce operating expenses by over $1.00 per square foot. Reconfigure vacancies to facilitate leasing.17000 N Dallas Parkway
Dallas, TX
Net Rentable Area: 47,000 SF
Purchase Date: June 2007
Sale Date: November 2008
Description:
A 47,000 square foot Class B office building in North Dallas, the property is well located and 88% leased at acquisition.
Strategy:
We felt we were getting a good buy, as the actual cap rate was 8.5%. Market was likely 7.75% at that time, and could have supported a sale price approximately $500,000 higher than we paid. It was felt that expenses could be reduced. Due to its prime location, it was expected rents could be increased over time.
Results:
We closed with a low leverage, pre-payable bank loan. Onsite maintenance was eliminated. The building's energy management system was overhauled and service contracts were re-bid. Operating expenses were reduced by over $1.00 per square foot. We increased the occupancy to 90% and sold the asset for a nice gain.Texas Star Business Centre
Euless, TX
Net Rentable Area: 78,000 SF
Purchase Date: June 2007
Sale Date: Holding
Description:
A 78,423 square foot multi-tenant office/warehouse project located in Euless, TX.
Strategy:
The project was owned by one of the Tenants, who had put the buildings in bankruptcy to avoid foreclosure from the lender. It was 80% leased at the time of Contract and had an environmental issue that needed to be cleaned up. The property was running inefficiently, with high operating expenses, and the rental rates were also below a similar yet inferior building across the street. It was felt the existing Tenants could be renewed at higher rates and expenses be reduced. During the due diligence, it was discovered one of the Tenants had vacated.
Result:
The Bankruptcy Court was approached about a price deduct due to the dark Tenant. They agreed to a credit of 1 year rent plus anticipated re-letting costs. An environmental consultant was able to get us a closure letter for the environmental issue and thereafter the transaction closed. Within 3 months, the dark space was re-leased at far less cost than the credit received. With professional management, expenses were reduced. New leases and renewals were signed at rates approaching $1.00 more per square foot than the rates in place at the time of purchase. The property has been leased to 89%. It is expected we will sell the project in 2012.I-10 @ 24th
Phoenix, AZ
Net Rentable Area: 80,000 SF
Purchase Date: July 2006
Sale Date: Various
Description:
Totaling 80,000 SF, the project consisted of a 40,000 SF, 2 story office and 4 freestanding flex/industrial buildings. The owner, a vitamin company, had purchased it several years prior as a corporate headquarters and encumbered it with a conduit loan. Subsequently, the ownership filed bankruptcy, and the project fell into disrepair. The trustee originally listed the project for sale at $70 per square foot, or $5,600,000.
Strategy:
A very complicated transaction, the project was less than 30% leased and suffered from extreme deferred maintenance.
Result:
Urban Capital was able to place the deal under contract for considerably less than asking price. On the last day of inspections, it was decided the price was too high and a $400,000 price reduction would be required in order to proceed. The bankruptcy court agreed to the reduction, provided $500,000 of earnest money become nonrefundable. We agreed to these terms.
Upon closing, an extensive renovation ensued, resulting in a dramatic transformation of the projects' appearance. Interior renovations were completed as well, with two crews doing tenant improvement work for an entire year. It should be noted that Urban Capital acted as general contractor for the renovations.
To facilitate the sale of the individual freestanding buildings, a commercial condominium was created. Three of the buildings were sold. Additionally, the 2 story office building sold as well. As of August 2008, one small building of 8,036 SF remains, with a nice profit already distributed.Adobe Point
Phoenix, AZ
Net Rentable Area: 30,000 SF
Purchase Date: May 2006
Sale Date: August 2007
Description:
A 30,000 SF office building in West Phoenix. The project had nice curb appeal, but was very neglected. The owner, a large industrial developer, had purchased the property one year prior in a 1031 exchange. They had not made any effort to lease or improve the operation of the property. They agreed to sell it at their cost which was $54/SF.
Strategy:
As the project was only 50% leased, an aggressive program of reconfiguring tenant spaces and building upgrades commenced, with Urban Capital acting as general contractor. Over $300,000 was spent on renovations. An equally aggressive marketing program ensued, with mail-outs, email broadcasts, and leasing bonuses for brokers.
Result:
Occupancy was quickly brought to 75% and the asset was able to service debt comfortably. Unfortunately, many of the new tenants were predominately engaged in residential real estate. Although Urban Capital was keenly aware of the pending decline in the residential market, they were taken as tenants to generate income.
By December 2006, the subprime lenders started to fail. Within 3 months, many tenants had vacated, and the building's occupancy was back to 50%.
Although the partners strongly disagreed with the decision, Urban Capital quickly put the property up for sale. We were able to close in August 2007 at a price resulting in a small loss. In retrospect, the sale was prudent, as the Phoenix market continued to decline.Palm Plaza
Chandler, AZ
Net Rentable Area: 61,000 SF
Purchase Date: January 2006
Sale Date: March 2007
Description:
Palm Plaza is a 61,000 SF business park located in Chandler (Southeast of Phoenix), Arizona. The project was 77% leased to 28 tenants at the time of acquisition.
Strategy:
Ownership was a California pension fund, not well suited to manage a project with a high number of small tenants. Immediately upon closing, we aggressively began reconfiguring and building out the vacant spaces. Urban Capital was general contractor for the tenant improvements. Just as aggressively, we offered various broker incentives and were able to stabilize occupancy at 95% within 12 months of acquisition.
Anticipating a softening in the Phoenix market, it was decided to sell the project. It was sold after 15 months, resulting in a nice profit.Westway Business Park
Arlington, TX
Net Rentable Area: 354,000 SF
Purchase Date: July 2005
Sale Date: April 2007
Description:
Westway is an 8 building multi-tenant flex portfolio. It is a combination of 5 late 80's era flex buildings, 1 two story Class B office buildings, and 2 new Class A flex buildings; a total of 353,870 square feet. At the time of purchase, one flex building was substantially vacant, and the other was completely vacant and had been for 5 years.
Strategy:
The seller was an institution who had lost momentum and was unwilling to be creative to fill vacancies. The leasing agents indicated the seller turned down several potential leases as they did not exactly fit their budget or rental expectations. A 10 year conduit note was placed at a very low fixed rate (5.05%) to close the transaction.
Result:
Within 9 months, we had leased the bulk of the vacancy, actually attracting a 100% office user into the vacant flex building by offering a rental rate far below the office buildings the tenant was considering. Although the tenant improvement costs were substantially higher than budget, so was the rental rate, creating significant value. Additionally, a sharp rise in interest rates meant our fixed financing was materially less than the rates at the time of sale. The project was sold in a package with Valwood.Rockworth
Rockwall & Ft. Worth, TX
Net Rentable Area: 132,000 SF
Purchase Date: January 2005
Sale Date: May 2006
Description:
Rockworth consisted of two buildings: a single Tenant office building in Ft. Worth totaling 31,792 square feet and a 100,000 square foot multi-tenant office/warehouse building in Rockwall, TX, a suburb of Dallas. The Rockwall building was 75% occupied at the time of acquisition. The Ft. Worth building had a new 5 year lease with a credit tenant.
Strategy:
The original plan was to buy the buildings individually as they were not geographically similar. However, the single tenant nature of the Ft. Worth building made it difficult to finance. The Rockwall building had 2 credit tenants on long term leases. By combining the 2 buildings, it became a multi-tenant portfolio and allowed for more favorable financing. We also felt the vacancy at Rockwall could be leased up with some fresh capital.
Result:
By combining the properties, the lender gained more security on lease rollover. This allowed us to increase leverage and reduce the interest rate over what was originally offered. Within 6 months of purchase, one of the existing tenants in Rockwall expanded into the vacancy. This gave us a 100% leased portfolio with no expiration for 4.5 years and all credit tenants. We were able to sell after 16 months.7722 E Gray Road
Scottsdale, AZ
Net Rentable Area: 40,000 SF
Purchase Date: December 2004
Sale Date: April 2006
Description:
40,000 SF office/warehouse near the Scottsdale airport. Although the building was well located, it suffered from functional obsolescence. Originally constructed as a manufacturing facility, it featured a large second floor warehouse and freight elevator. When the previous owner purchased the facility, it was leased to a single tenant on a NNN lease. Unfortunately, the tenant went bankrupt and he inherited a vacant building. He had leased only 20% of the space at the time Urban Capital acquired the building.
The purchase price was only $61/SF; very inexpensive for Scottsdale. Due to the distressed nature of the transaction, the seller agreed to carry financing at 93% of cost, with a fixed rate for 10 years.
Strategy:
The building was poorly configured, and encumbered by many undesirable leases. It was Urban Capital's intent to terminate those leases and renovate the interior, eventually leasing up the vacant space or selling the building to a user.
Result:
The undesirable tenants were vacated, and the interior was completely reconfigured; cutting in overhead doors and relocating air conditioning units to promote leasing of the warehouse space. The building was painted and landscaped. Urban Capital was general contractor for these improvements.
The property was leased up to 50% occupancy and then listed for sale. A local firm purchased the building for its own use.Valwood
Carrollton, TX
Net Rentable Area: 353,000 SF
Purchase Date: October 2004
Sale Date: April 2007
Description:
Valwood was a multi-tenant portfolio consisting of 4 separate Class A office/warehouse/flex buildings. The 353,000 square feet were 94% leased at the time of purchase.
Strategy:
Although this was not a "value add" play and the price per square foot was high, we were attracted to the long term leases, the quality of the assets, and the credit of the tenants. Additionally, all the leases had contractual rent increases. The intention was to hold these properties long-term. A 10 year conduit note was arranged at 5.50% fixed, interest-only for 5 years, allowing for a cash-on-cash return in excess of 12% annually.
Result:
A drop in cap rates and a rise in interest rates added significant value to the portfolio. The ownership decided to take advantage of the market conditions and sold after 30 months.Cambridge Court
Phoenix, AZ
Net Rentable Area: 46,000 SF
Purchase Date: July 2004
Sale Date: October 2005
Description:
A 46,000 SF class B office building located in Central Phoenix; the building was 73% leased at acquisition. Income provided a going-in cap rate of 5.5%, despite the low occupancy.
Strategy:
The strategy was to renovate the building and lease up the vacant space with $500,000 reserved in our interim loan for upgrades.
The project was painted, landscaped, and new signage was installed, dramatically enhancing its curb appeal. Many interior spaces were reconfigured.
Result:
With an acquisition cost of only $53/SF, we had the advantage of an extremely low basis. We sold the project to a developer for a nice profit.Blackmon Mooring
Grand Prairie, TX
Net Rentable Area: 102,000 SF
Purchase Date: March 2004
Sale Date: July 2004
Description:
A single tenant office/warehouse long term leased to a good credit tenant. The property had a perceived environmental problem which made marketing the building problematic.
Strategy:
Negotiate a lower purchase price due to the environmental problem and then solve the problem.
Results:
The property was put under Contract at a favorable price of $27 per square foot. The going-in cap rate was 10%. The due diligence was extended 4 months while the environmental issue was remedied. A national environmental consultant was retained and he sent a detailed report to the Texas National Resource Conservation Committee recommending closure. The TNRCC agreed and issued a closure letter, which effectively said the property was free from ongoing environmental contamination. Immediately after closing, the property was offered for sale with other single tenant assets. It was sold 4 months after purchase of ownership at a much lower cap rate.1711 Briercroft Ct
Carrollton, TX
Net Rentable Area: 67,000 SF
Purchase Date: October 2003
Sale Date: May 2005
Description:
A multi-tenant office/warehouse building located in the Valwood submarket, totaling 67,000 square feet.
Strategy:
The building was approximately 50% leased to a single tenant with one year remaining on their lease. The balance of the building was leased to several local credit tenants. The large tenant was a publically traded tech company who's business was contracting. For this reason, a favorable price was negotiated with an initial cap rate of 9.0%. As a result of our due diligence, we believed there was a high likelihood the tenant would renew in at least part of their square footage. The space they wished to vacate could be leased at higher rates.
Results:
After closing, the large tenant signed a new 5 year lease on approximately 65% of the space they were occupying. We also negotiated a buyout of the remaining space at approximately 50% of the obligation. We were able to back fill the vacated space at higher rates, using the buyout money for the tenant improvements. The property was sold after 19 months.10817 Sanden
Dallas, TX
Net Rentable Area: 34,325 SF
Purchase Date: October 2003
Sale Date: July 2004
Description:
A 34,325 square foot single tenant office/warehouse owned by the Tenant. Tenant had cash flow problems and wanted to sell the property to raise cash.
Strategy:
Negotiate a lease-back with Seller and enhance the credit of the lease.
Result:
Tenant agreed to sign a 7 year lease. To make the Tenant credit worthy, we required an irrevocable letter of credit for two years rent plus expenses be issued in favor of buyer. The LOC was due and payable in full in the event Tenant had an uncured monetary default. The property was sold before 1 year in a package of single tenant buildings.Truswal Systems
3000 Gateway
Arlington, TX
Net Rentable Area: 108,080 SF
Purchase Date: June 2003
Sale Date: July 2004
Description:
Two single-tenant office/ warehouse buildings leased for 3 and 5 years, respectively. Total area was 108,080 square feet.
Strategy:
Accumulate small single tenant assets and package them as a portfolio. At the time, a premium was being paid for bigger transactions. Both these buildings were bought on an unleveraged return which was higher than market.
Result:
Both buildings were sold in a package a little over a year after purchase. Even though the leases had not been enhanced, the exit cap rate was much lower than the purchase cap rate, generating a nice return.Post & Paddock
Grand Prairie, TX
Net Rentable Area: 242,000 SF
Purchase Date: January 2002
Sale Date: June 2003
Description:
A multi- building multi-tenant office/flex/warehouse totaling 242,000 square feet. The building is located in the North Great Southwest submarket of Dallas. The property consisted of 5 shallow bay flex buildings and two dock high distribution buildings. The Seller was an institution that was unfamiliar with industrial product. The property was 82% leased at time of purchase. As we were not the high bidder, another Buyer was initially awarded the Contract but failed to close.
Strategy:
Be more flexible on lease terms. Lease the building to a stabilized occupancy. Change vendors to reduce costs. Take short term debt and sell when stabilized.
Result:
Several new leases and renewals were signed within 6 months of taking ownership. Previous ownership refused to make leases with shorter than a three year term. One 20,000 square foot existing Tenant was planning to leave until we agreed to renew them for 1 year. They eventually signed another 1 year renewal when the first one expired. Maintenance Contracts were put out to bid and costs were significantly reduced. Property was stabilized and sold in approximately 18 months.Meridian Service Center
Grand Prairie, TX
Net Rentable Area: 115,000 SF
Purchase Date: October 2001
Sale Date: July 2004
Description :
A 114,688 square foot, single-tenant building office/warehouse leased to a credit Tenant. Their lease had only 3 years remaining at time of purchase. However, the tenant had occupied building for a long period of time.
Strategy:
Hold for cash flow while negotiating tenant renewal.
Result:
A call to the tenant's broker revealed the tenant was unhappy about the base year pass-throughs being charged. Because of the length of time Tenant had occupied the property, his base year was over 10 years old. A new lease was negotiated, extending the lease 5 years and increasing the face rate. The property was held for cash flow for almost 3 years and then sold in a package of single tenant buildings. By combining it in a package with other single-tenant buildings, the individual tenant exposures were mitigated. As a result, a high overall return was achieved.Irving Industrial Park
Dallas, TX
Net Rentable Area: 109,000 SF
Purchase Date: September 2001
Sale Date: November 2002
Description:
A three building multi-tenant office warehouse in the Trinity South submarket of Dallas totaling 109,480 square feet. The property had two large Tenants and several smaller Tenants. One of the large Tenants was a printer and had a short time left on their lease at below market rents. The other large Tenant was locked in for several years. 80% leased at time of purchase, the property was being leased and managed by a company located in a different city.
Strategy:
Lease up the buildings to full occupancy. Change leasing agents to a local firm. Upgrade the look of the buildings by painting and adding awnings. It was believed the printer would renew due to relocation cost.
Result:
The property was fully leased within 6 months. Further, the printer was renewed early with minimal tenant improvements at a higher rent. The property was sold to an out of state buyer in just over 1 year.Lone Star Business Park/Plaza Del Sol
Grand Prairie, TX
Net Rentable Area: 186,000 SF
Purchase Date: September 2000
Sale Date (Plaza): March 2001
Sale Date (Lone Star): April 2002
Description:
Two Multi-Tenant office/warehouse projects owned by a life insurance company and located in the Great Southwest submarket of Dallas. Lone Star was 50% leased at time of purchase and was in need of significant capital improvements. Plaza Del Sol was a stabilized project in good condition.
Strategy:
The buildings were bought as a package but put under two separate notes. Lone Star was in poor condition but was well located. It was thought by renovating the property, it would be a marketable asset. Additionally, the institutional owner had inflexible leasing standards geared toward large, national tenants. This greatly hindered their marketing efforts. Repairs were completed, dramatically improving the look of the building. At the same time, rents were increased at Plaza Del Sol.
Result:
Within 6 months of completing the capital repairs, Lone Star was 95% leased. A local investor expressed interest in buying Plaza Del Sol. The project was sold, returning 100% of the equity invested in both buildings. Lone Star was sold in a package with Aero and Corporate in just over in 18 months.Aero & Corporate Business Parks
Grand Prairie, TX
Net Rentable Area: 175,000 SF
Purchase Date: August 1999
Sale Date: April 2002
Description:
Two Multi-Tenant office/warehouse projects totaling 175,000 square feet. The projects were owned by a local investor who was poorly capitalized. Both properties suffered from deferred maintenance.
Strategy:
The buildings were bought as a package. Corporate catered to small users whereas Aero could accommodate larger tenants. It was felt tenants could be retained by moving them from Corporate to Aero as they grew. The existing tenants had become unhappy with the ownership due to considerable deferred maintenance. As a result, Tenants rarely renewed.
Result:
Immediately after purchasing the properties with pre-payable debt, the tenants were approached to derive a list of required repairs. Although some items were Tenant responsibilities per their leases, to build goodwill the new ownership completed the repairs. Aero was retro-fitted with 25 new air conditioners which were bought at a discount due to the quantity. Aero was also given a facelift as was Corporate. Results were immediate as Tenants began renewing at higher rates and many new leases were signed. Several Tenants moved from Corporate to Aero as they expanded. Within a year, the NOI had increased to a point where high leverage debt was obtainable. Two separate 10 year conduit notes were signed, returning approximately 75% of the equity to the investors. Aero and Corporate were then sold in a package with Lone Star Business Park 20 months later.Capital Business Park
Carrollton, TX
Net Rentable Area: 75,000 SF
Purchase Date: October 1998
Sale Date: June 2001
Description:
A 75,000 square foot, Class "A", multi Tenant office/warehouse located in the Valwood submarket of Dallas.
Strategy:
Owner wanted to sell Capital Business Park in a package with a less desireable building. While under Contract, our due diligence discovered a questionable lease and possible environmental problem on the second property. Initially, Seller refused to sell Capital alone, and the Contract was terminated. The owner had a 90 day window to pay off his debt on Capital with no penalty. Thereafter, the note would be pre payable only with yield maintenance, and the rate would be fixed for 5 years. This would make the property very difficult to market. The seller agreed to sell Capital providing it close in 30 days.
Result:
After negotiating a very favorable price, we were able to obtain a loan with a local banking relationship, getting through loan committee in less than 21 days. The property was closed within the 30 day window at an above market cap rate of 9.5%. After one year, the loan was refinanced with another local bank, returning 50% of investor equity. After renewing the largest tenant for an additional 5 year term, the property was sold after a 2 ½ year hold.109 - 333 Kirby
Garland (Dallas), TX
Net Rentable Area: 96,000 SF
Purchase Date: April 1998
Sale Date: Holding
Description:
96,000 SF multi-tenant office/warehouse. The property was highly occupied at closing, offering an above market cap rate and very low cost per square foot.
Strategy:
It was intended to hold the property for cash flow, as it generated annual cash on cash returns in excess of 20%.
Results:
Consistently high occupancy has provided current returns over 20% in most years. In 2007, the loan became pre-payable, and the partnership refinanced the project.Kingsley Business Center
Garland, TX
Net Rentable Area: 89,000 SF
Purchase Date: November 1998
Sale Date: October 2002
Description:
Kingsley Business Center is an 89,000 square foot mixed-use building combining office, office/warehouse, and manufacturing spaces. The property was well located on a major thoroughfare, and was 88% leased at acquisition.
Strategy:
Although well leased at the time of purchase, the project was poorly managed. Pass-throughs were not being enforced and the common area factor was far off from actual. Additionally, there were at least 4 different forms of leases in places, some gross, some net, some full service, making collections difficult. It was felt the building would be a good long term hold due to its flexibility and location. Long term debt was arranged, although the capital market meltdown of 1998 caused the loan dollars to be cut substantially, thus reducing the return.
Result:
Income was increased immediately as leases were enforced. Although there was initial Tenant resistance, collections increased significantly. The common areas were measured accurately and as a result the rentable square footage increased approximately 2,000 square feet over the amount assumed at closing. Lease forms were standardized, and as leases rolled new forms were put in place. The property was sold to an individual after an approximate 4 year hold, generating a nice overall return.800 - 810 Great Southwest Parkway
Grand Prairie, TX
Net Rentable Area: 18,000 SF
Purchase Date: February 1998
Sale Date: July 2000
Description:
An 18,000 square foot multi-tenant industrial building in the Great Southwest submarket, it was 80% leased at closing.
Strategy:
This was our first transaction as General Partner. The building was offered at a nice price per square foot and current yield. Additionally, it offered some upside through lease up of the vacant space.
Results:
A perfect first deal, it enabled us to get our partnership documents worked out and systems in order. We were able to sell in month 30 for a nice return. We quickly followed with the acquisition of Kirby 2 months later.