About Us
Investing in Temporarily Undervalued Real Estate
Proven Track Record
Founded in 2009, we invested during a financial crisis, Covid, and rising interest rates, yet have consistently delivered double-digit returns in every project we have undertaken, including office, development, and re-positioning.
Extensive Experience
Our team has closed over 100 deals totaling more than $4B in transactions. Our founder has been a real estate investor for 19 years, including corporate executive roles at major financial institutions.
Strategic Focus
We acquire overlooked or out-of-favor assets at uniquely compelling prices, including office, net lease, and for-sale housing inventory in the Southeast. We also offer credit enhancement solutions to owners and developers.
Our Investment Approach
Divergent Approach
We acquired retail and industrial properties in Western growth markets when no one was buying them after the financial crisis. We bought office buildings in pro-business high-growth cities after Covid. When the pendulum of fear swings too far, we lean in. Simply put, we buy overlooked or out-of-favor assets at compelling price points. We maintain a flexible mandate based on our collective diversified experience to maximize investment outcomes.
Vigilant Risk Management
While we've experienced unforeseen speed bumps, we've always generated positive returns, partially due to our key risk management tenets:
→ Utilize leverage sparingly if at all in preparation for an uncertain future
→Maintain a flexible investment horizon
→Manage investor and partner expectations and communicate frequently
Intensive Asset Management
We take a four-pronged approach:
  1. Reduce operating expenses aggressively and continually
  1. Pursue pro-active, grass-roots leasing or sale strategies
  1. Constantly re-evaluate alternative business plans and uses
  1. Maintain flexibility to exit at maximum value through seller financing, partnership, and other creative structures
Acquisition Strategy
Currently looking for low-basis and high-yield opportunities in the following markets
Office
High-quality suburban office buildings in pro-business markets with diverse employment and growing population
Net Lease
Net leased properties with short leases or marginal tenant credit, and higher CAP rates
Residential
SFR portfolios, land and homebuilder inventory in growth markets in the Southeast United States
Sample Projects
Indianapolis Office Re-positioning
Purchased a controlling interest in a 230,000 square foot, 10% occupied office building in Carmel, Indiana (Indianapolis) from a syndicated ownership group in the middle of a partnership dispute. We successfully cut operating expenses and sold the property to a local developer with plans to re-imagine the building and increase the site density. We generated close to a gross 2x return unlevered. We provided the buyer with a senior bridge loan to facilitate the sale and retained 6 acres of prime land.
Excess Corporate RE Acquisition in Denver
Acquired and repositioned a 200,000 sq ft industrial distribution facility in Denver, CO. The building had issues related to environmental contamination, clouds on title, material encroachments, and restrictive easements. After mitigating the issues, we dual tracked a leasing and sale strategy. We ultimately sold to an industrial REIT for approximately a 3x gross return unlevered within 2-3 years.
Portfolio Sale-Leaseback
Acquired 8 locations in 5 different states from a publicly traded building supplies and materials company, subject to a long-term sale-leaseback. We also built a new location for the tenant. We sold each location individually to private 1031 exchange buyers and achieved 150-200 basis points of CAP rate spread. The investment was successfully exited ahead of schedule and at prices higher than estimated. The returns generated exceeded our estimated high-case scenario.
Houston Medical Plaza Bought at Auction
Acquired a 25% occupied medical office building from auction when oil prices had declined significantly and the economy in Houston was soft as a result. Our acquisition basis was below land value. We aggressively cut operating expenses and took over the leasing to lead a pro-active leasing campaign to grab tenants from neighboring buildings and offer the lowest rates available. We were able to lease the building to 100% as a result. the building generates around a 50% yield-on-cost and is still in our portfolio.
Credit Strategy
Through our subsidiary Amplifi, we offer a niche credit strategy to entrepreneurial real estate owners and developers. Click here to learn more.
Contact Us
Artifex Partners, LLC
(213) 973-7150
Info@artifex-re.com