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Foundry has become an established and trusted advisor to clients for leasing, property management, project management, tenant representation, disposition brokerage and investment/development services throughout the Sun Belt. Now Foundry is rounding out its stable of service offerings by boldly getting into the investment sale business with the Investment Advisory Group (IAG), based in Nashville, forming the tip of the spear for this initiative. With over 75 years and $4.5 billion combined transaction experience, the IAG at Foundry takes on the role of trusted investment advisor with clients in the handling of asset dispositions, acquisitions, recapitalizations, and 1031 exchanges across all major product types – office, industrial, multi-family, industrial, and land. The scope of this team’s capabilities and track record ranges from over $50 million institutional investment sales to under $5 million private capital property sales. The team has developed a systematic process for listings, while tailoring each assignment to the unique needs of the client and the asset. While the IAG team operates from Nashville, they can execute transactions in any of the markets and states that Foundry Commercial has an office, or wherever a client needs our services.
Foundry knew as it expanded its presence in Nashville, they would have the opportunity to start the investment sales service line for the platform. In 2017, Foundry added 40+ year industry veteran Don Albright to the team, bringing a wealth of knowledge and experience in leadership and capital markets. The following year, Foundry strategically acquired local real estate firm OakPoint, and with it, founding partner Rick Helton who has a 25+ year career in investment sales. Next, Ally Lanahan was added to the IAG team having started her brokerage career with OakPoint after previously spending 10+ years in sales and marketing with Conde Nast and NeueHouse in New York City. The most recent member to round out the team is W.B. Scoggin, who recently relocated from Dallas, TX and has 10+ years of commercial real estate experience focusing on investment and developments in the multi-family, urban infill land, retail, hospitality sectors. Together, this five-person team has grown its reputation throughout the Foundry platform and beyond, offering truly unmatched experience and outstanding results by advising on investments of any size in any location.
Investment sales is a unique service line within the Foundry platform. It involves more than simply listing multi-tenant, incoming-producing properties with the goal of maximizing an asset’s value at the time of sale. Investment sales services takes into consideration the entire lifecycle of a real estate investment. The IAG team is able to provide a client with strategic investment advice from the initial acquisition of an asset through to the end of a holding period. During the ownership period, IAG can provide clients with annual property valuations through BOVs (broker opinions of value). These detailed BOVs include 5- and 10-year discounted cash flow analysis, financing assumptions, and market comparable data. The team can also stress-test an asset, provide multi-scenario analysis, and complete an operating expense audit. The goal is to give the client a comprehensive understanding of their asset and help them make important strategic decisions about their investments.
WINNING FOR CLIENTS TOGETHER WITH NO SILOS
One of the many ways that Foundry differentiates itself from other firms is its collaborative effort across the platform. We always put the needs of the client first, allowing us to share resources and services with teammates in other offices. Recently the Investment Advisory Group has been able to work with several team members across the platform to serve clients on the dispositions of assets, as well as provide valuable underwriting and market research for off-market opportunities.
During 2020, Matt Messier, who leads the Religious, Education, and Not-for-Profit Practice Group for the company, shared that he was assisting a client with a relocation out-of-state and reached out to IAG to assist with the disposition of the client’s headquarters building in Colorado Springs, CO. The team was able to successfully bring the property to market, which led to multiple offers for the client to choose from. Ultimately, the client selected a purchaser whose offer included a beneficial occupancy period to help with their relocation, at an attractive price within the team’s original valuation of the property.
Another recent opportunity came from Paige Bryant, Senior Associate on Foundry’s Retail Services team in the Carolinas. Paige is the leasing broker for a suburban retail center, and as the building was approaching stabilization through her success in leasing, the ownership group began to consider a sale of the property. Paige introduced her client to the IAG team, and the team was able to quickly produce an opinion of value, which helped the client decide to list the property for sale at a specific, recommended price. In collaboration with the Charlotte retail team, the IAG built out a robust offering memorandum, and at the time of this writing, is currently in the process of marketing the property for sale.
The Nashville industrial market has seen an increase in demand as the population continues to grow and industrial users want to be closer to rooftops. Melissa Alexander, industrial broker for Foundry in Nashville, sourced an off-market opportunity for a 12.5-acre last-mile industrial site that was sure to garner strong interest from both local and nationwide investors. Melissa and the IAG were able to advise the owner on the property’s value using a combination of comparable sales and income investment analysis. Then the team used this underwriting data to solicit an offer from an institutional investor in California with a purchase price just over the original valuation. At the time of this writing, the parties are actively negotiating an LOI for the sale of the property.
Through the IAG team, the practice of investment sales is emerging as a vital service component that allows Foundry to serve clients during the entire lifecycle of property ownership. In particular, the investment sales function integrates well with Foundry’s leasing and management services, with each service group enhancing each other’s capabilities. Ultimately, the no-silos approach at Foundry provides more value to our clients and strengthens our relationships both internally and externally.