DealPoint, Sperry Van Ness Want to Add Value
DealPoint Merrill and Sperry Van Ness International have formed a powerful partnership with capital preservation in mind.
By Barbra Murray, Contributing Editor
DealPoint Merrill and Sperry Van Ness International Corp. have partnered on the formation of SVN DealPoint Merrill Realty Partners, an internal private equity firm created to increase investor value through the acquisition and turnaround of value-add assets.
It’s a powerful partnership, combining SVNIC’s pipeline to investment prospects and DealPoint Merrill’s development expertise. Capital preservation will take precedence, as SVN DealPoint pursues significantly discounted assets offering great potential for quick cash-on-cash returns.
“There exists tremendous value add, buy-side opportunities in tertiary to major metropolitan markets throughout the country and we intend to create strong investment vehicles built around that,” Kevin Maggiacomo, president & CEO of SVNIC, told Commercial Property Executive. “Adding value to real estate, then selling by proactively marketing to and cooperating with the entire brokerage community is the SVN ethos and ensures maximum value, and we intend to leverage this–the unique SVN culture of collaboration–to produce above market investment returns.”
SVN DealPoint will target apartments, multi-tenant retail, self-storage assets and medical properties. Competition for these property types, even in locations outside of the top tier, can be steep but with more than 50 markets serviced under its brand in the U.S., SVNIC can provide the new co-investment platform insight into changing market conditions as well as deal flow.
However, SVNIC and DealPoint Merrill believe that it’s more than just their complementary alliance that makes SVN DealPoint a viable endeavor; it’s the current climate, as well. “The timing of the new partnership could not be better, now that the 2015 U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015–only the second year in the past decade with growth at that pace or better,” David Frank, CEO of DealPoint Merrill told CPE “And with that, the timing of our partnership will produce more and better-investment returns, providing the financial wherewithal to support greater deal opportunities nationwide. The timing of the collective goal of the new partnership will build preeminent investor value in today’s economy.”