SCOTTSDALE, AZ - Fifty Mission Capital, LLC and its founding principals, Jared Black and Peter Anadranistakis of Scottsdale, Arizona, announced that they have reached an agreement-in-principal to acquire all of the outstanding capital interests of Forefront Capital Master, LLC, the “general partner” of an existing real estate investment management practice devoted to multifamily communities located in Texas, specifically including its portfolio of 12 apartment communities in core Texas markets comprising approximately 950 apartment units as of the date of this press release.
Forefront Capital Master, LLC owns a controlling interest in (and a profits participation interest within) an existing apartment portfolio in Texas markets including Austin, Dallas and Amarillo acquired at a cost basis of just under Seventy Million Dollars ($70,000,000.00).
After the November 1st anticipated consummation of the “stock purchase” transaction, the selling founders are expected to continue to assist Fifty Mission Capital and Forefront Capital Master in acquiring additional apartment communities in core Southwest.
Jared Black, the controlling principal and founder of Forefront Capital Master, retains a 50% stake in the firm alongside of Peter Anadranistakis of Fifty Mission Capital at the closing of the acquisition. Jared was a majority owner and founder of Forefront and prior to 2016 served as the General Counsel of The Wolff Company, a real estate investment manager focused on multifamily investments.
“We could not be more pleased with this dynamic portfolio of apartment communities in prime locations including Dallas, Amarillo, Greenville, Henderson, and Austin acquired over the past three years by the founders of Forefront with the assistance of a host of investors” said Peter Anadranistakis in connection to the agreement. “Jared and I are excited to bring this business under the umbrella of Fifty Mission Capital and to continue to do business with the Texas-based founders of Forefront on new business in Texas. We believe with our proven asset management methodologies and our innovative technologies, we will drive revenue and decrease costs in the entire Texas portfolio. We expect that with an investment of a few million dollars principally targeted to physical plant improvements at the properties, which are anticipated to begin in late 2019, that we can drive the value of the entire portfolio upwards of twenty million dollars in an approximate two-year time frame. We are excited to close the purchase transaction and to continue to focus on quality “C” and “B” multifamily apartment acquisition opportunities throughout the Southwest. We expect to close our first acquisition in Phoenix in October of 2019, prior to the close of the purchase transaction for Forefront, bringing the principals of Fifty Mission Capital, LLC, control and ownership of 13 unique apartment communities, most in excess of 70 units.”
Fifty Mission Capital also announced that it has an additional property in escrow in the burgeoning and expanding Phoenix Midtown area, just north of downtown Phoenix, commonly known as “Midtown Flats” apartments. Fifty Mission Capital will be seeking capital commitments for this opportunity in the next calendar month.
Phoenix Midtown has had several announcements of new real estate developments in late 2019 including over one billion dollars ($1bn) in residential, multi-family, commercial, and hospitality development within the past six months alone. With the acquisition of the next property in Phoenix Midtown, Fifty Mission Capital, as a “general partner” and controlling principal, will break the 1,000-unit mark, a significant milestone in apartment community ownership, that is anticipated to exceed $100 Million in commercial real property assets under management (e.g. “AUM”) by the end of fiscal year 2019.
Jared Black, CEO of Fifty Mission Capital and the Founder and Managing Partner of Black Law Group PLLC, a boutique investment management law practice, stated, “With the addition of these new methodologies and innovations including the infusion of technology into our real estate, we expect that our investors will be incredibly pleased with the increase of property value for the private positions now held in their portfolios in these properties. Peter brings over 30 years of real estate experience and I am honored to call him my business partner. We are truly excited to being the process of building a capable investment management staff devoted to wise apartment investing in every part of the business cycle.”
Fifty Mission Capital is a joint venture between Peter Anadranistakis of O2. Capital and Jared Black of Black Law Group PLLC that focuses on the ownership and management of apartment communities in desirable locations in the Southwest, preferably in excess of 70 units but in values trending below $20MM.