With high barriers to entry for new development, Goshen Plaza represented a value-add opportunity to penetrate a market at or below replacement costs with low use of leverage. The repositioning included renovations to the facade, roof and landscaping. Upon disposition, the asset was 93 percent leased and included national retailers such as McDonald’s, CVS/Pharmacy, Subway, Pet Valu, Metro PCS and Pizza Hut.
This is the second closed-end private equity fund Elion Partners has fully-cycled. Vintaged in 2012, EREF II’s portfolio was comprised of mainly retail assets in the northeast, southeast and midwest with executions involving both value-add and development strategies. The portfolio included a 130,000-square-foot build-to-suit for Citrix, a multinational software company, located in downtown Raleigh, North Carolina. With the market strongly favoring triple net retail assets, the Fund’s strategy also included the acquisition and redevelopment of a portfolio of 14 former Blockbuster video locations ranging from 4,800 square feet to 14,400 square feet. EREF II secured leases prior to closing on the land and sold the portfolio in 2014.
Elion Real Estate Fund II, LP Portfolio:
- Citrix; Build-to-Suit; 130,000 SF
- Goshen Plaza; Retail; Value-Add; 43,000 SF
- Seasons 52; Retail; Value-Add; 7,867 SF
- Coon Rapids; Retail; Development; 11,200 SF
- King of Prussia; Retail; Development; 6,800 SF
- 14 Assets in the redevelopment portfolio; Retail; 4,800 SF to 14,400 SF