Portfolio

JREA had the opportunity to acquire a condo development which was slated to have 43 units. This was one of the first luxury buildings in this area of the Rockaways. The sellers were in default on their loan and needed to recapitalize. JREA purchased the debt from the lender, completed the work and sold 95% of the units within 12 months. The IRR on this transaction as 44%

Jacobs Real Estate Advisors, LLC partnered with CityView Commercial LLC, for the purchase of the Southlake Mall in Morrow, GA. CityView Commercial is the Real Estate arm to Jimmy Jazz which owns and operates 200 stores all
over the country. Southlake Mall is a two-level mall consisting of approximately 1,015,984 square feet of gross leasable area. The property boasts strong tenant sales with a vibrant lineup of national inline tenants and a
high-volume Macy’s. New additions such as H&M,Forever 21, RED, and Chime Solutions have reinforced Southlake Mall’s position in the market. Based on our hands-on management experience we were able to increase the NOI over $2M in the first year of the acquisition. Cash on cash returns year 1 were 23.8%. In 2020 we were able to purchase the 1st mortgage from our lender at a 59% discount to the mortgage.

Jacobs Real Estate Advisors, LLC with an affiliate purchased the Gallery at Warren Conner an 111,710 square foot shopping center in Detroit, MI. The transaction was closed in 10 days. The property was previously bank-owned and was purchased via auction at a 70% discount from the original note. The Gallery currently has below-market rents yet still boasts above-average sales per tenant square foot. Tenants include Forman Mills, Footlocker, Rainbow Apparel and CitiTrends. After stabilizing the property, we were able to refinance all of the equity out of the property which still maintains strong cash flow at the property. Prior to any appreciation of the asset there is a 59% IRR.

JREA along with a joint venture partner originated a loan which was secured by a hard contract on 440West 41 st Street New York NY. The property had undergone a partner dispute and there was a court order to sell the property. A
few weeks before the planned closing it became apparent that the buyers were not going to be able to close on the property and the partnership would have to close on the property or risked losing our deposit. As we felt like the property was being sold for a below market price, we worked with a lender to close on this $27M transaction in
under 2 weeks. After taking over the property JREA was involved in the management and worked to stabilize the
property. After a few months an opportunity came up and the lender purchased JREA’s membership interest in
the partnership. The IRR on this transaction was 3360%.

700 Atlantic Ave was purchased in 2011 and the entire transaction from contract to closing took place in under 15 days. The property is steps away from Barclays center and the Atlantic terminal mall which was being developed at the time. The location and development in the area was a key driver in purchasing this property and our quick execution gave us the ability to purchase the property for a below market price. The property was a 3-story building that was built in 1906 and features sturdy, old-school brick exteriors and soaring 16-foot ceilings. As part of the operating plan the property was marketed and sold in 2012. The IRR on this transaction was 55%

When the property was purchased in 2013 it was an active Hawthorn Extended Stay hotel. However, due to high demand for apartments in the area, JREA converted the entire property into a high-value multifamily property.

This sale marks JREA’s continued commitment to creating value add real estate opportunities even in a turbulent market.

The Process:

The buildings required some renovation to update and convert each unit into a rentable apartment. Additionally, 2 new units were added to maximize the investment. To ensure cash flow during renovation, the conversion took place one building at a time, over 12 months.

By 2018, the property had stabilized and JREA refinanced, taking out a significant portion of the initial equity.

In December 2020, with no formal marketing, JREA was approached by a buyer and accepted an offer above asking price to exit the property.