investors.

Investor Alignment 

Management Participation

Oxford Realty managers personally: 
• Make a monetary investment in every property.
• Sign on the acquisition loans.
• Are actively involved in the day-to-day management from beginning to end.
• Only receive a promoted share of the profits when the investment returns are achieved.

These measures incentivize Oxford to not only achieve the highest returns, but also to minimize risk.

Property Strategy

“Core” and “Value Add” Asset

Oxford Realty Advisors targets multi-tenant value-add industrial properties located near growing markets which provide flexible warehouse and office options to local businesses. Target properties typically have 7+% yields at acquisition with below market rents.  Oxford adds value to properties over time by reducing vacancy and increasing rent through various leasing strategies. Disciplined capital improvements also allow for a superior tenancy.   Such properties are benefitting from e-commerce growth and provide a diverse tenant pool, especially important in case of recession. 

Oxford acquires properties with established existing tenants thereby assuring a stable baseline cash flow.  We then add value over the holding period by inserting our active management and leasing teams, leasing vacant spaces, upgrading the existing tenancy, and executing strategic capital improvements when necessary.

 

CASE STUDIES

 

CURRENT INVESTMENTS

29000 INFORMATION LANE, EASTON, MARYLAND

Type: Multi-tenant industrial/flex

Location: Easton, Maryland

Purchase Price: $2,000,000

  • 5 buildings totaling 49,500 square feet comprised of 1,500 square feet units. All with small office component and at-grade overhead drive-in doors.

  • Date: 2017

    Occupancy:33%

    Purchase Price: $2,000,000 ($41.67 psf)

    NOI: $80,000 -- 4.00% cap rate

  • Property was developed by founder of multi-billion dollar national construction company and at acquisition was owned by said construction company. Asset management fell to executives that had other responsibilities and this asset was very small relative to other projects the company/executives were involved with. As a result, it was not considered a priority for the company.

    The type of tenants that rent these small units are often local, non-credit companies that are not used to dealing with a large landlord that moves slowly and has a lengthy, cumbersome application process.

    We felt if we could deploy non-traditional marketing methods to attract target tenants, offer rent abatement/concessions as necessary, and improve responsiveness, we could increase occupancy quickly and later raise rents as occupancy stabilized.

  • Units that rented for $8 PSF on a gross basis prior to acquisition are now renting for $14 PSF gross and property is fully-occupied with a current waiting list for tenants. NOI has grown from $80,000 to current level of $400,000 and there is still significant room for NOI improvement as units carrying below-market rent become vacant or up for renewal, which is why we have not sold this asset yet.

    Based on current market conditions, we believe this asset would sell for in excess of $6,000,000. Acquisition was made with all cash – if debt were used to acquire the asset with a LTV of 65%, current cash-on-cash return would be 48%.

9050 RED BRANCH ROAD, COLUMBIA, MARYLAND

Type: Multi-tenant industrial/flex

Location: Columbia, Maryland

Purchase Price: $7,667,000

  • 90,000 square foot multi-tenant industrial building comprised of 5,000 – 15,000 square feet units. All with small office component and standard truck height docks. Some units also have concrete ramps that accommodate drive-in applications.

  • Date: 2015

    Occupancy:100%

    Purchase Price: $7,667,000 ($85.18 psf)

    NOI: $613,000 -- 8.00% cap rate

    Debt: $4,100,000 non-recourse from Insurance company

  • Asset was stabilized but rents were slightly below market. Plan was to raise rates as possible while still maintaining high occupancy and enjoy spread between cap rate and debt (4.5%)

  • Increasing rents dramatically has been difficult due to minimal turnover. Despite this, NOI has grown to $810,000 and we have turned down offers up to $20,000,000 to sell this asset as we believe there is still significant room for rent growth.

    Current cash-on-cash return is 19.4%

CURRENT INVESTMENTS

1900 NORTH BROADWAY, BALTIMORE, MARYLAND

Type: Multi-tenant retail

Location: Baltimore, Maryland

Purchase Price: $1,250,000

  • 26,000 square feet multi-tenant medical retail comprised of 2,000 – 11,000 square feet units.

  • Date: 2017

    Occupancy:77%

    Purchase Price: $1,250,000 ($48.08 psf)

    NOI: $100,000 – 8.0% cap rate

  • Property was owned by a national ministry that formerly used it as their headquarters. There was a 6,000 square foot vacancy which former ownership had been having difficulty renting. In addition, rents at time of acquisition were well below market.

  • Shortly after acquisition, we were approached about the vacancy by a national dialysis treatment center that had a 9,000 square foot requirement. Since we only had 6,000 square feet available, meeting this requirement would necessitate obtaining additional square footage from neighboring tenants. On one side was a tenant that occupied 1500 square feet and there was a tenant on the other side that occupied 11,000 square feet. Terminating the 1500 square foot tenant required us to find a replacement space in another building in the area and compensate them for their assistance. We were also fortunate enough to get the other neighboring tenant to give up 2,000 square feet of their space to facilitate this transaction.

    This transaction allowed us to replace square footage that had been at significantly below market rents with market rents and also back fill a vacancy. Immediate increase to NOI was $175,000.

    Current NOI is $350,000. Based on current market conditions, we believe this asset would sell for in excess of $5,500,000. Acquisition was made with all cash – if debt were used to acquire the asset with a LTV of 65%, current cash-on-cash return would be 39%.

SEPICH PORTFOLIO, COLUMBUS, MARYLAND

Type: Multi-tenant industrial/flex

Location: Columbus, Ohio

Purchase Price: $4,600,000

  • 8 buildings with 110,000 square feet that included 42 tenants occupying spaces ranging in size from 1,500 – 5,000 square feet units. Units had varying levels of office build-out. Some had at-grade overhead drive-in doors and others had standard truck-high docks and overhead doors. Also included were 5 acres of industrially-zoned land, a cell tower, and a billboard.

  • Date: February, 2021

    Occupancy: 100%

    Purchase Price: $4,600,000 ($41.82 psf)

    NOI: $400,000 – 8.7% cap rate

  • Property was owned by the heirs of the gentleman that built the buildings. Property management and leasing were being handled by a daughter that lived in California with the help of her sister living in Columbus. Occupancy was 100% but rents were over 50% below market and we thought we could get rents up significantly by using social media and other non-traditional marketing efforts to increase pool of potential tenants as spaces rolled. And by increasing rents as renewals came up.

  • Units renting at time of acquisition for less than $6 PSF on a gross basis are now renting for $13 PSF gross and property is fully-occupied with a current waiting list for tenants. NOI has grown from $400,000 to current level of $540,000 in less than 18 months and there is still significant room for NOI improvement as units carrying below-market rent become vacant or up for renewal.

    Based on current market conditions, we believe this asset would sell for in excess of $10,000,000. Acquisition was made with all cash – if debt were used to acquire the asset with a LTV of 65%, current cash-on-cash return would be 26.1%.

RECENT DISPOSITION

FAIRGROUND VILLAGE CENTER, WESTMINSTEr, MARYLAND

Type: Multi-tenant retail neighborhood center

Location: Westminster, Maryland

Purchase Price: $2,250,000

  • 30,000 square feet multi-tenant retail neighborhood shopping center comprised of 1,200 – 5,000 square feet units.

  • Date: 2015

    Occupancy:80%

    Purchase Price: $2,250,000 ($75 psf)

    NOI: $180,000 -- 8.00% cap rate

    Debt: $1,750,000 full recourse from regional bank

  • Asset had significant vacancy and below market rents. Plan was to back fill vacancy and raise rates.

  • After acquisition, largest and longest-tenured tenant defaulted, which resulted in a vacancy rate of 37%. Ownership demised newly vacant space into multiple spaces, which facilitated quick lease-up of space and at higher rates. In addition, empty spaces were shortly back-filled and occupancy remained at 100% almost the entire time asset was owned until it was sold in 2020.

    NOI was increased to $340,000 and asset was sold in 2020 (during Covid pandemic) for $4,500,000. Investment multiple was 4.5 and IRR was 63+%.