Learn more about our
JV Program
Partnerships
That Work
GIPR’s JV program allows investors to receive a strong return on preferred equity investments for specific deals that suit the JV partners investment criteria.
GIPR acquires properties with the intent to repay the JV investment within a fixed time period (generally 2-3 years), and provides the JV partner with monthly distributions while assuming all ongoing management responsibilities.
Pratt & Whitney JV CASE STUDY
We took a look at one of our favorite success stories here at GIPR. Here is what happened.
THE OPPORTUNITY
Purchase an approximately 63,000 SF, single-tenant property occupied by Pratt & Whitney (At the time a subsidiary of United Technologies, NYSE: UTX. Now a subsidiary Raytheon Technologies, NYSE: RTX with a market cap of $94B and a credit rating with S&P.
Tenant had recently renewed their lease for nine years with a termination option after four years - essentially a four-year primary lease term.
Vacant land adjacent to the property was also available for purchase for future development and/or expansion
THE JOINT VENTURE
GIPR entered into a joint venture agreement for the JV partner to provide $2.2M of preferred equity)
The debt was sourced and guaranteed by GIPR (not the JV partner)
GIPR provided the JV partner a monthly cash return in addition to a deferred
predetermined exit premium
The JV agreement was for two-years with an early exit option for the JV partner by paying the JV partner the deferred exit premium
GIPR UNDERWRITING
Rent for the tenant was slightly below market rate
Pratt & Whitney generated approximately $17B/year in revenue and $25MM at that location
The rent-to-revenue ratio for the location was approximately 3%>
There was over $10MM of equipment at the location
The submarket for the location had a 0.00% vacancy rate, implying high demand for the asset in case of a vacancy in four years
THE OUTCOME
GIPR created an SPE with the JV partner and purchased the asset which
included an option to purchase the adjacent land within five years
GIPR repositioned the JV partner equity and allowed for the JV partner to exit after twelve months and paid the deferred IRR at the time of exit
Raytheon reached out to GIPR to discuss an expansion of up to an additional 90,000 SF with a commensurate lease extension using
the adjacent land that was optioned by GIPR
Interested in joining GIPR?
What we're looking for
GIPR acquires, owns, and manages a diversified portfolio of single-tenant net lease retail properties with high-credit-quality tenants across the United States. If you are interested in our Joint Venture Program, please reach out to our Director of Capital Markets, Emily Hewland by filling out the form below. She will be in touch shortly.
