DALLAS-Two upper-level Texas executives, hitting the streets as Vintage Interests LP, have amassed $50 million of equity to acquire $150 million of industrial value-add properties in Dallas/Fort Worth, Houston and Austin. A letter of intent for the first acquisition should be inked this week.
Who's at the head of the play is as significant as Vintage's strategy to build a value-add portfolio with resale appeal to institutional investment circles--Rusty Perry, the 11-year partner and regional director of acquisitions and management for Archon Group, based in nearby Irving. His behind-the-scenes partner is Brett Landes, who plans to remain in his founding role at locally based Staubach Capital. The equity partner, also local, is "a prominent pension fund advisory firm," Perry says.
In recent years, Perry has been leading a similar buying strategy for Archon along the Texas-Mexico border. "I was ready to do it with my own account," he explains to GlobeSt.com. "I think in the back of my mind I've always thought about when would be the right time to go out on my own." He says today's abundance of institutional investment capital was the deciding factor.
Perry, who exited Archon just 11 days ago, says the plan is to acquire properties "below the institutional radar screen" in the $3-million to $10-million range, 30,000 sf to 200,000 sf and multi-tenant. Empty buildings, those in lease-up or needing renovation are prime candidates in one-off transactions or portfolio buys, he says. "The key issue for us is they are good, functional buildings that will stand the test of time," he explains. "We'd like to aggregate a larger portfolio, but we're willing to do it in small transactions."
Perry, leasing office space at 2525 Fairmount St. in Dallas, says a letter of intent should be signed this week for the first acquisition. And, he's got offers out on several other properties.
Perry says Vintage will stick to one equity backer. "They've committed $50 million as a first fund of sorts, but the intent is to expand it as we get it invested," he says. "I'd like to say we'll have it spent in a year, but it will be used as quickly as we can find good deals. We're not trying to force the money out the door."
Perry is the second high-profile exit in less than two months in Dallas investment circles. Jeff Stone, a senior managing director left his long-time post at Holliday Fenoglio Fowler LP at year's end to set out on his own. Meanwhile, Archon has replaced Perry by expanding Steve Reynolds' territory of Chicago, Atlanta and Florida to include Texas.
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