We are a Dallas based real estate investment companyWe believe the success of an office investment is primarily driven by the operator/sponsor’s ability to execute a business plan.
We specialize in value-add, class B office building investments in the sunbelt. The firm’s main objective is to achieve superior risk adjusted returns for its investors by acquiring assets well below replacement cost, repositioning them, stabilizing the cash flow and selling to the core investment market. Founded in 2011, Menyon Capital Partners and its partners have capitalized office investments totaling $25 million. MCP is an experienced operator with institutional and private real estate equity relationships.
Bobby Jefferson, the Managing Principal of Menyon Capital Partners, has a rich real estate investment history dating over 22 years; prior to forming MCP he was VP of Investments with Parmenter Realty Partners and an investment analyst with Invesco. Additionally, Mr. Jefferson has been involved in over $1.0 billion in office property investments totaling several million square feet.
What is our strategy?
We believe the success of an office investment is primarily driven by the operator/sponsor’s ability to execute a business plan. A prudent unemotional approach to operating an asset will produce attractive returns across all market cycles. We are focused on making “strategic value-add investments”, a concept centered on the idea that each office building has its own story, potential niche, and requires its own value-add strategy.
MCP Investment Criteria
Major Metropolitan cities in the sunbelt with a primary focus on Austin, Dallas/Fort. Worth, Houston & San Antonio.
Invest in submarkets with proven demand for office that have a high concentration of well educated workers.
Discount to replacement cost/& Discount to the competitive set’s ownership basis.
Prefer superior Class B office buildings in “A” locations nearby walkable retail and multi-family housing.
Prefer 50%-80% leased (assuming there is upside in the rent roll, we will evaluate opportunities that are 80%+ leased) $5 million – $25 million.
Owned Properties (Partner in the GP)
- Three Building Office Portfolio-The DFW Business Center (115,000 sf); 3200 East Airfield (73,000 sf-Former DFW Airport HQ’s)
- Quasi Off-Market deal sourced by MCP
- 60 Year Leasehold Interest
- 100% Vacant at acquisition
- Acquired at 100% below replacement cost
- Garage park 8/1,000
- Buildings have never been widely marketed or operated by a third party group
- Located in the closes proximity of the airport
- Business plan is to establish the office leasing market at the DFW International Airport
Value add Activities
- Renovated lobbies, common areas, restrooms, whiteboxed a portion of the vacancy
- Re-branding and Repositioning
- Implemented a shuttle service to the airport terminals
- Amenity Package- Building lounge, conference room, fitness center, and mini deli
- 46% Leased
- Projected IRR 30%+
- Projected multiple 3X
- Acquired Off-Market
- Deed in Lieu of Foreclosure
- Value-add investment
- Purchased at approximately 50% of replacement cost
- 76% occupied at purchase
- Superior location with immediate access to Highway 121
- Close proximity to the DFW Airport
- Owned by a cash constrained TIC Partnership in an improving market
Value Add Activities
- Cured severe deferred maintenance (major HVAC overhaul)
- Installed an EMS System
- Renovated lobbies, common areas, and restrooms in both buildings
- Improved Tenant Satisfaction
- Re-branded the asset and improved its perception among brokers in the market
- Improved occupancy 91%
- Executed new leases $1.50-$2.00 psf above underwriting.
- 96% tenant retention rate
- Proforma IRR 19.51%; Realized IRR 39%
- Proforma multiple 1.50X; Realized 2.21X
Bobby formed Menyon Capital Partners in 2010. His 21 years of real estate experience includes acquisitions/dispositions of investment properties, asset management, raising capital and corporate real estate. During his career, he has been involved in commercial real estate transactions that total over a $1 billion.