ST. LOUIS — Three St. Louis commercial real estate executives have formed a new investment company with the intent to acquire distressed properties. John Ross, Mark Billeaud and Scott Reese recently launched Summit Realty Ventures. The new company plans to invest $60 million to acquire industrial and retail properties primarily in Texas, Florida and Colorado.
In a release, Billeaud points out that many in the industry believe that more distressed assets will come to market throughout the rest of the year, which will create acquisition opportunities for the company. Summit will be looking for high-quality, income-producing properties that are undervalued but contain the potential for short-term value growth.
In February, Summit closed on its first pool of investment capital, in the process forming ArrowRock Income Growth Fund I. The fund recently closed on its first property, a warehouse/office flex property located at 8080 TriStar Drive in Dallas. The multi-tenant facility totals 81,000 square feet and was 37 percent occupied at the time of closing. Ross said the Class A property was purchased at 36 percent of replacement cost, helping the company see a definite return on its investment.
In addition to the Dallas/Fort Worth Metroplex, Summit Realty Markets is looking at the Denver and Orlando markets. Specifically, the company is targeting Class A, multi-tenant industrial buildings as well as community shopping centers. The fund plans to deploy its $60 million in capital in the next 3 years.
— Coleman Wood