Client Profile:

A San Francisco Bay Area based high net worth family trust seeking to reinvest earnings from a highly successful family business into commercial real estate

Client Objective:

Assemble a geographically diversified portfolio of generational, trophy quality, net leased retail assets

Project Challenges:

Due to limited supply, bidding for high quality retail assets was highly competitive. Despite the extremely low capitalization rates prevailing in the market, the sponsor required positive leverage from the accompanying financing.

Pegasus Services Involved:
  • Investment Sales
  • Capital Markets
  • Asset Management
Pegasus Solution:

Pegasus Investments utilized its proprietary database of developers, investors and brokers to source opportunities that would otherwise not have been available to the client, including properties still in development. In addition to gaining access to off market opportunities, Pegasus Investments leveraged its market knowledge and reputation for certainty of execution to enable sellers to confidently enter into negotiations with the client without undertaking a broad marketing process.

Results:

Pegasus Investments assembled a nationwide portfolio of trophy quality retail assets occupied by best in class tenants in diverse, internet resistant industries. Pegasus Capital Markets utilized its extensive roster of net leased retail lenders to arrange unique debt solutions for each property, which included CMBS, life insurance company and credit union financing. In addition to freeing the sponsor of management responsibilities, Pegasus Asset Management utilized strategic management of the underlying assets to drive cash flow in excess of underwritten assumptions.