In a joint venture with an institutional investment partner, Seagate purchased a portfolio of warehouse properties from a Wall Street-based leverage buy-out firm. The purchase consisted of 675,000 square feet of existing buildings with 24 acres of excess land in three Northern California locations.On the upside, current market conditions were favorable and we saw untapped value in the properties and excess land.The seller was motivated, and we knew we could realize the value potential inherent in the transaction through a carefully structured sale-leaseback. On the downside, we were concerned about credit underwriting based on the quality of the tenant's credit. Our strategy: to minimize the credit risk through enhanced security deposits and to restructure the portfolio.

Subsequently, we sold the least desirable warehouse, thus recouping our entire equity investment. We then sold the least desirable land parcel and developed the most desirable parcel while retaining the bulk of the portfolio.

We're proud of what we have accomplished with our properties and trust that they illustrate how we creatively fulfill investment goals. If you have objectives of your own, whether they be challenging or conservative, call us.