AIC Ventures Fund is a private equity real estate fund and active buyer of corporate real estate, focused on providing capital via sale/leaseback financing to middle-market companies.
AIC engaged Colliers to assist with the sale advisory and execution services regarding its Fund IV Portfolio comprising of eleven industrial and office assets totaling 1,380,000 square feet located across ten different states. Specific challenges for this assignment were as follows:
- Multiple tenants with sub-investment grade credit
- Above market rents, exceeding current market conditions
- Some properties with environmental concerns requiring additional studies during the due diligence period
- Several of the buildings were built-to-suit for the tenant and would be difficult to re-tenant
- Facilities were geographically dispersed, with several located in secondary and tertiary markets
- Defeasance of existing debt was required for certain portfolio assets
- The properties were of various ages and physical condition, requiring an in-depth upfront understanding of the assets prior to marketing
Colliers organized a team with comprehensive real estate, financial, legal and marketing skill sets required to develop and implement a multifaceted portfolio marketing and disposition strategy.
Colliers was able to focus a disciplined programmatic approach to the disposition, including execution of all necessary upfront due diligence, which resulted in shortening the marketing and closing time frame to just 105 days.
The Colliers team utilized the full breadth of its investor relationships and local markets knowledge to achieve a $115.4 million sales price, representing a capitalization rate of 7.25%, exceeding the client's expectations of pricing and start to close timing.
"When it came time to sell our portfolio, we turned to Colliers. The team exceeded my expectations, their execution of the entire process was exceptional and was handled with a level of unparalleled professionalism. I am strongly committed to a strategic relationship with Colliers for the future." PETER S. CARLSEN, PRESIDENT AIC VENTURES