jhme Executes on $280 Million Portfolio Acquisition

PRESS RELEASE

jhme Real Estate Advisors, a commercial real estate investment and capital markets consulting firm, has announced the recent deployment of $280 million in equity capital on behalf of a privately held real estate investment platform. jhme supported the efforts as a part of a 1031 exchange and oversaw due diligence efforts for the portfolio acquisition.

The portfolio is a diversified mix of income-producing apartments and new multi-family development projects in Texas, Colorado, Arizona and California. The deal will provide core holdings for the ownership group while deferring capital gains taxes. jhme provided underwriting, due-diligence, inspection period reports and seamless submissions to debt partners to allow for timely execution within 90 days.

"The investment criteria and due diligence time-tables were tailored to the needs and specific capital allocation requirements of our client," Jeremie Stenman, managing partner for the Dallas-based jhme Real Estate Advisors, said. "Our due diligence and underwriting practices were ideal for their shareholder requirements which allowed for concurrent execution across multiple markets, while maintaining a joint accountability toward mitigating risk. It seems like fixed-income investors have helped to sustain liquidity but also inflated valuations. With that being said, prices vary widely by sector, region, and sub-market. We tend to favor multi-family and office, but there are clearly dislocations and above market risk-adjusted returns across all asset classes."

Stenman goes on to say, "With trading volume sustaining current levels, it was imperative to identify and acquire pristine assets from the right partners. This helped to foster fundamentals for the collective portfolio."

jhme specializes in the consulting and due diligence practices associated with acquiring real estate assets, as well as supporting the deployment of debt, mezzanine and equity capital across an array of leveraged attachment points. The company has made its name providing financial due diligence support, as well as inspection period and construction management services to private and institutional clients since 1985. "The triangulation of various disciplines really hines deal acumen for our clients," Stenman said.

The client and jhme are actively looking to acquire other assets as they transition into 2Q. The firm has said its U.S. investments for this pool will be focused on Texas, Colorado, California and certain sub-markets with sustainable economic opportunity.