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Case Studies
Every transaction has its challenges. Flint Creek Partners specializes in finding appropriate capital for our clients in the midst of those challenging situations. We don’t offer boilerplate solutions to our clients — each transaction we spearhead is customized to the company’s specific needs.
The following are a few examples:
Case Study 1
Flint Creek Partners tapped into our 15+ year relationships with debt providers in order to secure an attractive piece of capital during extremely challenging capital markets dynamics.
Results: Secured $40 MM construction financing commitment from a leading Midwestern financial services firm. FCP continued to facilitate pay-out of the committed funds after the US debt markets collapsed in Q3 2008.
Case Study 2
Non-Core asset real estate client seeking institutional investment faced significant competition from other similar firms all seeking institutional investment. A number of previous institutional investments in the asset class were unsuccessful, causing investors to be jaded toward the sector.Focus on clients’ strong, seasoned management team with over 100 years of combined real estate expertise; client had over 80 properties for investor to consider that could be contributed to a joint venture
Results: Joint venture formed for client with an international institutional real estate investor. Client received a $75 MM direct equity investment allowing for $250 MM in leveraged buying power. Client also directly sold 9 properties to the investor valued at $68 MM.
Case Study 3
Client with virtually unknown management team, and experience almost exclusively in developing industrial properties, sought institutional joint venture partnership in the midst of a challenging economic and geopolitical environment.Focus potential institutional investors on entrepreneurial quality of leadership team, client had created $170 MM industrial portfolio with no prior institutional investment
Results: Obtained $285MM for client: $25MM entity investment forming a private REIT, $200MM of equity in an asset level joint venture, $60MM of portfolio assets sold to a public REIT recycling existing investors’ equity capital into the two newly formed ventures.
Case Study 4
Hotel/Lodging Client required to modify its corporate structure due to changing tax regulations. In the process of the transaction, the overall lodging sector was experiencing continually deteriorating operating fundamentals. Additionally, a potential conflict of interest with the management team had to be overcome.Over a period of 18 months, negotiate a Win-Win contract for both the REIT and the lodging management company.
Results: REIT’s stock price (NYSE) up +5.1% the first week after the transaction was announced, up a total +11.3% one month after the transaction; as compared to the total lodging sector which showed -0.5% and +5.2% results in the same respective time periods. Upon the later sale of the public REIT, the Flint Creek Partners structured management contract was purchased at a substantial valuation to the principals.