Our Successes

Our expertise produces great results. See some of our successes.

Moran & Company knows that maximizing proceeds from a multifamily investment is not a “one-size-fits-all” solution. We are a team of complex problem solvers.

One Santa Fe

The Property
One Santa Fe is a 438-unit apartment community built over 80,000 sq. ft. of commercial space on a land lease in L.A.’s emerging Arts District. It was financed with a long term FHA loan, LIHTC tax credits, New Market Tax Credits and additional financing from Canyon Capital. It was located in an area which was “close” to LA’s downtown. But its immediate neighborhood was almost exclusively industrial and was bordered by large rail yards. Moran & Company was retained to sell this property at completion of construction in late 2014 as the property commenced lease up.

The Challenge
This marketing assignment presented two significant challenges:

The emerging neighborhood had not yet emerged. Visually the neighborhood looked like a collection of abandoned and underutilized warehouses covered with graffiti. Investors could not “see” what was planned for each site. Instead they only saw a gritty, lifeless, warehouse district with almost no pedestrian traffic. With the exception of an occasional coffee shop, there were no recent generation rental properties or any visible residential amenities.

The capital structure was incredibly complex. Buying a property, subject to a ground lease with market rate resets, and sharing ownership with two types of tax credit investors was a financial structure that gave most multifamily investors significant pause. Moran knew that any buyer would have to be so confident in the overwhelmingly compelling real estate merits of this site that they would roll up their sleeves and work through its complex financial structure.

The Solution
The foundation of Moran and Company’s marketing plan was to help this neighborhood emerge in the eyes of the investment community. It was to help investors understand that the Arts District was well on its way to becoming L.A.’s first authentic historic district, with the vibe of New York’s hip Meat Packing District.

To that end, we unveiled the story for every building and scripted driving and walking tours led by Moran and Company personnel that exposed the architecture of this hot new neighborhood. We unveiled plans for conversion of a 9-building Flour mill into the largest commercial art gallery in the world. We exposed acquisitions underway to convert the old Ford Factory and other significant industrial buildings into creative office space. We walked investors through craft breweries and took them to lunch or dinner at LA’s hottest restaurants that had recently opened in the area.

Moran and Company previewed this property with investors in their offices in a road show format when the property was less than 50% leased. We invited qualified investors to meet us in the neighborhood to get the benefit of our walking and driving tours. We fielded multiple competitive offers and put the property under contract before the property had completed its residential or commercial lease up.

This unique opportunity required a unique, sensitive and compelling marketing plan to consummate an early sale. Moran & Company was able to design and execute this plan and motivate the right investors to engage and bid.

One Santa Fe sold to Berkshire in January of 2016 for $178 million.

Downtown Los Angeles Arts District / 438 units

Houston House

Houston House Houston House was a unique acquisition opportunity in Houston’s growing Downtown submarket. Despite complexities in both the structure of the transaction and physical limitations of the property, Moran and Company executed a successful transaction that remains one of the top sales in Houston’s downtown neighborhood.

The Challenge: At the time Houston House went to market, there were only two residential buildings in the Downtown submarket, creating uncertainty about the future viability of the area as a rental neighborhood. Additionally, despite a $10 million upgrade prior to marketing, the property had limitations compared to new product; notably a parking ratio less than 1:1, 7 foot ceiling heights, and no washer/dryer connections. Adding to the complexity, the property was encumbered by a HUD 221 D4 loan that had to be assumed and the transaction was being offered as an 80% equity recapitalization. The offering structure and existing loan limited the number of institutional investors able to participate which required that Moran & Company to find new and unique buyers willing to take on a challenging transaction.

The Solution: When taking Houston House to market two issues had to be addressed and properly positioned with investors: (1) the future viability of Downtown Houston as an attractive residential neighborhood and (2) the potential of Houston House as a value-add property with strong upside despite the existing loan and partnership structure.

Addressing the neighborhood concerns, even though Downtown only had two other rental properties, Moran & Company was able to point out how Houston’s tax credit incentives were spurring new residential development. Developers including Alliance Residential, Trammell Crow, and Novarre already had 18 new projects in various stages of development and Downtown Houston was poised for incredible growth. Addressing the transaction structure, Moran & Company was about to show investors the benefits of the HUD loan and the proposed partnership structure. The HUD loan offered a more leverage than conventional bank or agency financing, allowing for better than market leveraged returns. The partnership structure allowed investors to benefit from potential lower property taxes since the lack of a deed transfer helped insulate the property from Texas taxing authorities, given the non-disclosure status of Texas.

The Conclusion: Moran & Company recognized the unique opportunity Houston House offered and by emphasizing the attractive returns and dynamic location of the property, the asset was sold to a university endowment for a record price in Downtown Houston. The new owners believed in the value-add potential of the property that included revitalizing the vacant commercial space in the property as well as the long-term potential of a Downtown Houston location.