Acquisition Criteria

Mascia Development, LLC: Investment Criteria

Mascia Development, LLC is currently seeking opportunities to acquire retail, medical office, industrial, and multifamily assets across the United States. We seek projects on a national basis in areas with growing population and strong real estate fundamentals. See below for specifics on each property type.

 

Retail Criteria

Existing, cash-flowing assets: single tenant net lease, grocery-anchored centers, power centers, and strip centers. The property must be highly visible, have adequate parking;located on a heavily traveled roadway (i.e. 15,000+ cars per day or greater); and have a population of 50,000+ within 5 miles. Retail centers with extra land, outparcels, or vacancy are preferred. We will also consider portfolios of smaller properties.Potential transactions for the Company may include single assets or portfolio acquisitions.

 

Development projects: build-to-suit single-unit project or multi-unit development program single or multi-tenant net lease, power center, or strip center. In general, low TI deals with generic improvements.

 

Preferred Deal Specifics:

  • Size: $2mm-$15mm (will consider smaller or larger on a case-by-case basis)
  • Acquisition Stabilized Cap Rate: 8.0%+ on current cash flow (lower current cap rate possible with upside potential)
  • Re-Development Cap Rate (aka Build to Cap Rate): 10%+ on projected cash flow
  • Quality: Class B or better
  • Leasing: 60-100% leased
  • Debt: Purchases made on an all-cash basis are preferred, but will assume existing debt in some cases

Medical Office Criteria

Existing, cash-flowing assets: single or multiple tenants under net leases are preferred. The property must be highly visible; have adequate parking and ADA compliance;located within 5 miles of a hospital or multiple other medical users; and have a population of 50,000+ within 5 miles.Potential transactions for the Company may include single assets or portfolio acquisitions.

 

Development projects: build-to-suit single-unit project or multi-unit development program single or multi-tenant net lease. In general, low TI deals with generic improvements.

 

Preferred Deal Specifics:

  • Size: $4mm-$15mm (will consider smaller or larger on a case-by-case basis)
  • Acquisition Stabilized Cap Rate: 8.5%+ on current cash flow (lower possible with upside potential)
  • Re-Development Cap Rate (aka Build to Cap Rate): 10%+ on projected cash flow
  • Quality: Class B or better
  • Leasing: 60-100% leased
  • Debt: Purchases made on an all-cash basis are preferred, but will assume existing debt in some cases

Industrial Criteria

Existing, cash-flowing assets: single or multiple tenants with net leases are preferred with uses of manufacturing, R&D, assembly, warehouse, or distribution. The property must contain adequate parking, loading docks, structural bearing and ceiling heights; located near freeway access, airports or seaports; and have a clean phase 1 environmental. Potential transactions for the Company may include single assets or portfolio acquisitions. Properties that have above market average vacancy, have leasing rollover exposure, significant deferred maintenance or need re-positioning or renovation will also be considered.

 

Development projects: build-to-suit single-unit project or multi-unit development program single or multi-tenant industrial, light industrial, incubator industrial, mid-size multi-tenant industrial, or service center. In general, low TI deals with generic improvements.

 

Preferred Deal Specifics:

  • Size: $3mm-$15mm (will consider smaller or larger on a case-by-case basis)
  • Acquisition Stabilized Cap Rate: 10.0%+ on current cash flow (lower possible with upside potential)
  • Re-Development Cap Rate (aka Build to Cap Rate): 12%+ on projected cash flow
  • Quality: Class B or better
  • Leasing: 60-100% leased
  • Debt: Purchases made on an all-cash basis are preferred, but will assume existing debt in some cases

Multifamily Criteria

Existing, cash-flowing assets: class B/C multi-family or mixed-use buildings, but not affordable housing or senior assisted living. The property must be near major employment and shopping centers; have good school districts; and have a population of 100,000+ within 5 miles. Multi-family with extra land, higher than market average vacancy, or lower than market average rents are preferred.

 

Development projects: In general 50 to 300 units with adequate parking that would otherwise fit our general acquisition criteria.

 

Preferred Deal Specifics:

  • Size-$10mm-$20mm (will consider smaller or larger on a case-by-case basis)
  • Acquisition Stabilized Cap Rate-8.0%+ on current cash flow (lower possible with upside potential)
  • Re-Development Cap Rate (aka Build to Cap Rate) of- 10%+ on projected cash flow
  • Quality: Class C or better
  • Leasing: 60-100% leased
  • Debt: Purchases made on an all-cash basis are preferred, but will assume existing debt in some cases

Deal offerings should include: asking price, physical description, site plan/survey, description of tenants, detailed rent roll including rent, options, escalations, types of guarantee (Corporate/Franchisee/Personal) and reimbursement details if any, operating statements for the past three years and current year to date, photographs/maps, summary of recent capital expenditures, demographics within a 3 and 5 mile radius, traffic counts, market information, ownership structure, property tax information, tenant sales, and environmental studies.

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