Mezzanine Conversion Loan
Connaught provided a $9,600,000 investment in the form of a mezzanine loan for a 440-unit condominium conversion located in Phoenix, Arizona. The project had total development costs of $62,300,000 and total sales of $88,800,000.
Condominium Conversion Investment
Connaught provided an initial investment of $11,290,000 in the form of a mezzanine loan for the acquisition and conversion to condominiums of a 348-unit apartment complex located in Austin, Texas. Since the initial funding, Connaught has assumed control as the owner and operator of the deployment, which continues to function as a rental apartment community while individual units are marketed for sale as condominiums.
Mezzanine Conversion Loan
Connaught provided a $10,900,000 mezzanine loan to facilitate the conversion of an existing office building into 63 high-end condominiums on top of ground floor retails space. The project is located between the South End and Back Bay neighborhoods of Boston, MA.
Senior Debt Participation
Beverly Hills, California
In cooperation with a Chicago-based bank, Connaught provided an approximately $29 million senior loan on a parcel of land in the heart of Beverly Hills, California. The site, which is only a few blocks from the world famous Golden Triangle shopping district, is earmarked for the development of 44 ultra-luxury condominiums and 19,000 square feet of retail space.
Mezzanine Construction Loan
Connaught provided an $8,700,000 mezzanine construction loan for a 158-unit student housing project located at the University of Texas in Austin. The project is located in the West Campus neighborhood of Austin and will serve one of the largest student body populations in the U.S.
Forensic Project Review
Connaught provided consulting services for a European-based pension fund financial advisor which purchased approximately 50 townhome units in the “Dream” residential development, located approximately 8 miles from Disney World. Connaught was engaged to advise our client on determining a go-forward plan related to the management of all aspects of the development (entitlement, construction, financing, marketing, etc.) and ultimate exit strategy. Connaught assessed ongoing project progress and on-site activity, analyzed the financial ability of the developer to complete the overall project within budgeted time frames, and evaluated the viability of the contracts and agreements between our client and the project developer. In addition, Connaught utilized its network of contacts and market research capabilities to identify alternative investment strategies for our client generating superior risk-adjusted returns on their investment.
Fund Management and Oversight
Domestic United States
Connaught has an investment services agreement with a leading $10+ billion European private equity firm that specializes in alternative asset investment including real estate. Connaught is the manager for an affiliated U.S.-based hedge fund whereby we originate real estate investment opportunities, fully underwrite each potential transaction, and upon funding, manage our client’s overall asset base on their behalf. Under this arrangement, Connaught closed 9 unique investments corresponding to over $30 million of invested capital under management.
Suburban Chicago, Illinois
Connaught has been engaged on an ad hoc basis since the beginning of 2007 by a suburban Chicago municipality to provide ongoing real estate consulting services. Connaught is relied upon for their industry expertise and network of contacts to assist the municipality in various real estate endeavors. Specific projects that our firm has performed include the evaluation of a developer’s qualifications, experience, plans, and financial wherewithal to accomplish a land assemblage and mixed-use project targeted for the municipality’s downtown redevelopment. Additionally, Connaught team members served as trusted advisors assisting our client in evaluating the financial, fiscal, and market feasibility for a substantial master-planned development totaling over one million square feet of office, retail, condominium, row homes, hotel, and parking.
Asset Management / Construction and Sales Process Review
Suburban Los Angeles, California
Connaught has been engaged to perform development advisory services for a European investment company related to a 96-unit development project featuring luxury condominiums. Connaught’s role includes monitoring and assisting the developer as the project goes through the local entitlement and subsequent construction processes. Additionally, Connaught is responsible for consistently examining market trends to provide our client with real-time overviews of any local supply and demand balance issues that may occur. Through regular involvement in the project, both onsite and remotely, monthly asset management reports are produced summarizing the current status of the development and market trends, and responding to concerns of the client.
Connaught performed due diligence and provided recommendations to equity investors on a multi-parcel, luxury project in a resort town in Colorado. The Connaught team provided in-depth analysis of the management team, the capital structure, the debt components, and the overall project viability to decipher the best course for the existing investors. After detailed information gathering, Connaught produced advanced financial modeling and sensitivity analysis of the projects under numerous scenarios, assumptions and market conditions. Additionally, Connaught assisted in identifying and pursuing multiple exits for the developer to ensure capital preservation for the investors.
Subject Matter Expert
Connaught participates in regular meetings between the Federal Reserve Bank of Chicago, business leaders, experts, economists, and other representatives from various economic sectors, in which Bank personnel hear commentary on current economic conditions by industry. The findings are of these meetings are published by the Federal Reserve in a Summary of Commentary on Current Economic Conditions, which is commonly referred to as the “Beige Book.” Connaught provides expert testimony regarding local and regional real estate markets and commercial real estate finance activity.