Balco Properties is seeking: “B- to B+” Office in all 9 county metro’s, medical office in commercial areas, and industrial assets at acquisition costs of between $5,000,000 and $20,000,000. Properties in the $5,000,000 to $10,000,000 range can be purchased “all-cash”.
We view ourselves as an “opportunistic purchaser.” Properties are acquired when there is a “value added” component available through repositioning, re-leasing, re-configuring and/or refinancing. The typical holding period is long for good assets. Some of our assets have been owned for over thirty years.
Cash Flow Targets:
Our investment target, when reviewing an acquisition candidate, is to acquire properties that will generate distributions of at least 9% in the early years of the investment, increasing to 11% to 12% in years three or four, and in excess of 12% as the investment matures.
The best assets in the right location consistently attract the best tenants, get the highest rent, maintain higher occupancy levels and garner the best interest rates. It is important that we acquire our properties at or below replacement costs.
Good quality assets have specific supply and demand characteristics in common. We focus on supply-constrained markets with significant barriers to entry. Barriers include lack of land for future development, restrictive zoning, or impossible to replicate land in the case of rail served industrial properties.
High Demand Locations:
Our target assets are located in large or small (Lafayette, Orinda, Marin) dynamic markets with transportation advantages (such as freeway access, an airport or port). We especially like assets where our tenants are able take public transportation and are able to walk for goods and services.
For inquiries regarding acquisition opportunities contact Reed Westphal at 510-763-2911.