Accord Group Advises on $200M Recapitalization Transaction for Bixby Land Company
MARCH 2024
Accord Group Holdings has served as the exclusive financial adviser to the Bixby Land Company in its establishment of Bixby Industrial Fund 1.
The recapitalization portfolio consists of five industrial properties, two located in Mira Loma, Calif.; two in Phoenix; and one in Atlanta. Goldman Sachs Alternatives and an Ares Management Real Estate Secondaries fund are equity investors in the newly established fund.
“Accord started advising Bixby Land on this transaction last April,” said Jack Berquist, managing partner at Accord. “To see this transaction come together successfully in less than a year with two highly experienced investment partners during a period of economic challenges for commercial real estate is a testament to the team at Bixby and Accord’s structuring capabilities.”
The initial portfolio consists of five industrial properties totaling more than 836,000 square feet of leasable space. The properties are 100 percent leased to a total of 10 tenants with a weighted average lease term of 2.4 years. The favorable loss to lease at these properties provides an opportunity for the investors to realize significant rental growth on their investment. The Atlanta property is the largest in the portfolio at 281,000 square feet. According to Newmark’s National Industrial Conditions and Trends report for Fourth Quarter 2023, industrial assets smaller than 300,000 square feet account for the largest share of leasing activity and the lowest vacancy rates.
“Bixby has built a legacy of successful real estate value creation by acquiring highly functional assets in strategic locations,” said Aaron Hill, CEO of Bixby Land Company. “Working with Accord and our institutional partners, the creation of Bixby Industrial Fund 1 capitalizes on the success of five of our recent investments and establishes a platform for the future growth of our industrial portfolio.”
Michael Severson, CIO of Bixby Land Company, added, “We believe the industrial market is poised to continue its outperformance of other real estate segments, particularly traditional office. The fundamentals of slowing supply of new construction, positive demographic shifts in Bixby’s target geographies, and secular rise of ecommerce in a post-COVID economy made this past year an ideal time to launch and close this transaction.”
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ABOUT ACCORD CAPITAL PARTNERS LLC
Accord, through its affiliates, is a global capital advisor, principal investor and investment manager. With its headquarters in San Francisco and personnel in Chicago, London, Hong Kong and Seoul, Accord engages with a wide variety of participants in the real estate private equity industry. Accord Capital Partners, its broker/dealer affiliate, provides advisory and capital raising services in the United States. Accord Europe Limited, its broker/dealer affiliate, provides advisory and capital raising services in the United Kingdom and Europe. For further information on Accord, visit: www.accord-group.net.
