Case Studies

The following Case Studies represent the first three platform investments made through a closed-end fund by the team while at Berkshire Group, but do not include all of the investments. Broadview currently acts as a sub-advisor to that Berkshire fund.

LCB Senior Living

Background

  • Introduced to LCB in 2012, closed entity level transaction in 2013 (LCB Berkshire)
  • LCB principals had prior senior housing experience
  • Started with core group of seven employees, two managed assets
  • Opportunity to build top-tier operating company and capitalize on favorable development yields in attractive northeast markets

Value Add

  • Provide entity-level capital to grow the organization and increase its senior housing development and acquisitions volume
  • Offer strategic direction by helping formulate plan for investment strategy, key underwriting criteria and capital markets approach
  • Advise on organizational build-out
  • Incorporate institutional best practices into investment committee process, development risk mitigation, and reporting to investors
  • Advise on negotiations with potential LP equity partners and lenders to optimize terms
  • Capital investment allows for higher GP co-invest, which can facilitate better terms with LP equity partners and lenders
  • Provide growth capital for corporate overhead, pursuit costs and support for guarantees to lenders

Platform Status

  • Closed 28 senior housing acquisitions and development projects totaling over $840 million in cost
  • Expanded company’s reach from New England to the Mid-Atlantic region and NYC metro area
  • Have grown LCB team to 60 corporate employees and over 1600 property level management company employees
South Windsor Farms | South Windsor, CT | 80 Units

 


      Source:  Broadview, LCB Senior Living

Lodging Capital Partners

Background

  • Prior relationship with LCP team; closed platform (LCP Berkshire) in early 2011
  • LCP principals had prior lodging sector experience
  • Opportunity to invest in the hotel sector in 2011, difficult capital environment for cyclical assets

Value Add

  • Provided GP capital to support hotel acquisitions strategy
  • Incorporated institutional best practices into investment committee process and reporting to investors
  • Vetted pipeline investments on a weekly basis, reviewed underwriting, and approved all platform investments
  • Improved terms with LP equity partners by bringing institutional knowledge into JV negotiations and introduced new LP relationships
  • Provided growth capital for corporate overhead, pursuit costs, and support for guarantees to lenders

Platform Status

  • Acquired nine hotels with a total capitalization of over $700 million between 2011 and 2014
  • LCP Berkshire has realized seven investments producing returns above original underwriting
Four Seasons Hotel AustinFour Seasons Hotel | Austin, TX | 291 Rooms
Hilton | Portland, OR | 782 Rooms

Strategic Capital Partners

Background

  • Introduced to SCP in early 2015 and closed venture in late 2015 (Berkshire SCP)
  • SCP principals had prior office and industrial experience as senior executives at Duke Realty and wanted to increase investment capacity
  • Opportunity to acquire and develop office and industrial properties in secondary and tertiary markets in the Southeast, Mid-Atlantic and Midwest

Value Add

  • Provide programmatic GP capital to support a greater volume of new investments
  • Vet pipeline investments on a weekly basis, review underwriting, and ensure consistency and marketability
  • Assist with project due diligence where applicable
  • Improve terms with LP equity partners by bringing institutional knowledge into negotiations and introduced new LP relationships
  • Provide capital for pursuit costs and pre-development

Platform Status

  • Closed 4 office acquisition and development deals representing a total of over 2.6 million square feet of office space
  • Closed 4 industrial warehouse and flex acquisition and development deals representing a total of approximately 2.1 million square feet of space

 

 

Patriot Park | Raleigh, NC | 880,000 SF
Parkwood Crossing | Indianapolis, IN | 1,200,000 SF