Investments

Turnkey Acquisition Platform with National Coverage and Market Knowledge

Through the experience and geographic distribution of its principals along with third-party market intelligence relationships, Summit provides institutional quality underwriting, distressed asset and REO management and resolution services that can be seamlessly integrated into an investment firm’s existing operating and reporting standards and structures.

Select Investment Results

Brazos Partners 150x150 InvestmentsBrazos Partners, L.P.

  • Founding Member of Brazos Partners, (now known as Lone Star Opportunity Fund).
  • Brazos formed to purchase and liquidate the ‘bad bank’ assets of American Savings Bank which had been purchased from the RTC.
  • Initial portfolio – $2.7 billion OPB, 1,293 assets and 10 property types located in 32 states
  • Aggressive portfolio management results – $150 million profit, 423.2% IRR & 6.5 x Equity Multiple

woodall 150x150 Investments 1616 Woodall Rodgers, Dallas, TX

  • Class A office building located in the Arts District adjacent to downtown Dallas, TX.
  • Eight story building with approx. 265,000 square feet of space.
  • Property was purchased directly from the owner, American Electric Power at a price equivalent to 15% of the original construction cost.

princenton 150x150 InvestmentsPrinceton Windrows, Princeton, NJ

  • Active retirement community with 294 luxury condos and townhomes located in Princeton, NJ.
  • Purchased 188 out of 294 age restricted condominiums at 25% of the original after the developer defaulted and declared bankruptcy.

parkcentral1 150x150 Investments12404 Park Central, Dallas, TX

    • Class A office building located near I-75 in north Dallas, TX.
    • Four story office building with approx. 240,000 square feet of space. Property was purchased from Crescent REIT at a price equal to 20% of replacement cost.
    • Originally a single tenant facility, property was re-configured to accommodate multi-tenants and is 90% occupied.

Hyatt Dulles Hotel 150x150 InvestmentsHyatt Dulles Hotel

  • Hotel available due to partnership dissolution
  • Privately negotiated off market transaction
  • 317 keys located at entrance to Dulles airport Purchase Price – $51 million (50% of replacement costs)
  • Seller financing at 80% LTV at 5.0% interest, Purchase at 10.0% Cap Rate TTM
  • Sold to Major Hotel REIT for $72.5 million ($230,000 / key & 7.5% cap rate)
  • Equity Multiple – 2.0 x

3 sides farm InvestmentsThree Sides Farm, TX, OK, AR

  • Purchase 4,300 acre farm located in Texas, Oklahoma & Arkansas, purchase Price = $9 million plus $1.2 million in new pivot irrigation systems 2,700 cultivated acres.
  • Excellent underutilized soils suited for corn & potatoes.
  • Deal was sourced through local broker and allowing existing farmer’s son to continue to occupy dwelling & pasture land for short term lease.
  • Resolution – Investing $1.2 million in new pivot irrigation systems which will draw water from existing wells and Red River.
  • Sell 1,000 acres of pasture land, SFR, barns, weighing facility and shop building to reduce basis.
  • Market rental income = $528,000 annually after improvements made.

Wilshire 300x168 InvestmentsWilshire Enterprises

  • Wilshire Enterprises (AMEX:WOC) is controlled by a prominent family
  • Shares trading at 20% of underlying value of real estate ($9 – 10 per share)
  • Sourced through personal relationship within the industry
  • Purchase 5% of shares outstanding at $2.00 – 3.00 per share
  • Summit & Oaktree Capital offer to purchase Wilshire. Meetings with CEO and other executives unproductive. Company responds by hiring an investment banker and adopting a poison pill
  • As other investors accumulate stock, Summit & Oaktree liquidate their holdings at $6.00 – $7.00 per share
  • Equity Multiple of 1.4 x and IRR = 19.7%

iStar Financial 300x82 InvestmentsiStar Financial

  • iStar Financial (NYSE:SFI) paying 8% dividend – 300 bp above US Treasuries and discount to liquidation value
  • Purchased $10 million of equity on open market
  • Company paying high dividend rate and owning high interest rate assets in a declining interest rate environment
  • Equity Multiple = 2.0 x
  • IRR = 30%

Ochiltree Farms 150x150 InvestmentsOchiltree Farms

  • Purchase 7,235 acre farm 150 miles NW of Amarillo, TX
  • 5,358 pivot irrigated acres
  • Excellent Class 1 soils and 1,200 gpm water supplied by the Ogallala aquifer
  • Products – corn, cotton, milo, wheat & alfalfa
  • Purchase Price – $26 million
  • Off market deal sourced through relationship with Oklahoma farmer who knew Seller
  • Sale leaseback at $1.3 million/year (5.0% yield) plus flex rent
  • First significant sale in the area led to additional local opportunities

Blossom Farm 150x150 InvestmentsBlossom Farm Note Purchase

  • Purchase 1st Lien Note at a discount to face value and 50% of farm value
  • 1,881 acre farm located in Blossom, TX – 10 miles east of Paris, TX
  • Purchase Price – $3.36 million
  • Total Owed – $3.8 million
  • Contract Interest Rate @ 6%, 15 yr amortization (12% loan constant)
  • Accrued Interest – 18.00% annually
  • Products – corn, wheat, alfalfa
  • Deal sourced by creating relationship with former property owner who carried back paper on sale in 2008
  • Purchased Note while simultaneously offering to purchase farm out of BK court
  • Loan accrues at $50,000 per month while in bankruptcy
  • $6.5 million offer to purchase farm submitted to BK court by borrower
  • $1.5 million of physical improvements made to property above farming value