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SkyWalker Property Partners Rolls Out Two Value-Add Investment Funds

ARLINGTON, Texas – SkyWalker Property Partners has launched a pair of value-add investment funds to ring in the New Year, seeking to amass up to $40 million to seed the acquisition of office, industrial and retail projects in Texas and surrounding states.

The new funds – When Opportunity Knocks LLC and Cash Flow Fever LLC – will produce up to $120 million of combined buying power by leveraging acquisitions at a 65% to 75% ratio. Each fund will range from $10 million to $20 million with an investment horizon of seven years.

"We are filling an investment need for our friends and property partners," says Gary Walker, founder and president of Arlington, Texas-based SkyWalker Property Partners. "I am personally investing in these new funds along with my family and friends."

Walker, who has more than two decades of investment experience, is projecting a preferred return of 9% for When Opportunity Knocks and 7% for Cash Flow Fever. The investment sweet spot are commercial projects that are generally too large for individual investors and too small for institutional investors.

When Opportunity Knocks is modeled after SkyWalker Property's Hangover Fund, which has sold five of the 21 properties in the portfolio. Hangover's projected IRR average exceeds 30%.

Like the Hangover Fund, the new investment fund is targeting under-performing and problem properties that are prime candidates for repositioning through upgrades or operating efficiencies. Investment possibilities also include partnership issues/dissolutions, inability to refinance maturing debt or a tenant's desire to own part of its real estate.

Cash Flow Fever is zeroing in on stabilized or near-stabilized properties that can be acquired at below-replacement values in primary and secondary cities or submarkets. Its proceeds too can be used to partner with a company that wants to be an owner/occupant.

"Stabilized properties often present chances to increase value by tightening operating expenses, managing tenant rollover or upgrading the real estate," says Clint Holland, acquisitions director.

SkyWalker Property has always had strong relationships in investment and financial circles, but it gained additional deal-sourcing clout last year when its affiliate, SCM Real Estate Services, merged with New York-based Coldwell Banker Commercial Alliance, which is part of a $4 billion financial firm that invests in CMBS mortgage pools and buys/originates/securitizes small balance commercial mortgages. The North Texas office is one of more than 200 in the CBC Alliance global network.

"This significantly expands our abilities and resources to find high-quality real estate investment opportunities," Walker says. "Under the radar deals are out there and we will find them through our strong ties in the financial and brokerage networks."

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To schedule an interview:

Gary Walker, Clint Holland, 817-226-5000

 

SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of the Hangover Opportunity Fund LLC, formed in 2010 to build a $100 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $1 million to $10 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.

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255 N. Center Street | Suite 200 | Arlington, TX 76011 | 817.226.5000