Customized Solutions. Superior Execution.
Western Reserve’s professionals have significant experience in the real estate industry, having executed more than 65 transactions worth nearly $5 billion in the following sectors:
MOLINA HEALTHCARE, INC.
Western Reserve Partners served as a co-advisor and placement agent to Molina Healthcare, Inc. (NYSE: MOH) in its sale and lease back of its corporate headquarters in Long Beach, California and satellite office in Columbus, Ohio. Molina closed the transaction on June 13, 2013, conveying both properties to AG Net Lease Acquisition Corp., the dedicated net lease group of Angelo, Gordon & Co., for $158.6 million in proceeds. The transaction was led by Managing Director Victor Faris, supported by Associate Matthew Reus and Analyst Andrew Foster.
Molina Healthcare, Inc., a FORTUNE 500 company, provides quality and cost-effective Medicaid-related solutions to meet the health care needs of low-income families and individuals and to assist state agencies in their administration of the Medicaid program. Molina’s licensed health plans in California, Florida, Michigan, New Mexico, Ohio, Texas, Utah, Washington, and Wisconsin currently serve approximately 1.8 million members, and Molina’s subsidiary, Molina Medicaid Solutions, provides business processing and information technology administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, and drug rebate administration services in Florida. More information about Molina Healthcare is available at www.molinahealthcare.com.
“We were delighted to represent Molina and to work with McKinney Advisory Group and Molina’s management team on this transaction,” said Mr. Faris. “This partnership allowed Molina to cost-effectively monetize the value of its real estate and is a great outcome for both parties.”
“We thoroughly enjoyed working with Western Reserve Partners, McKinney Advisory Group and Molina on this sale lease back. We look forward to a long and mutually beneficial relationship with all of the involved parties,” said Fort Parker, a Director at Angelo, Gordon & Co.
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ISLAND ONE, INC.
Western Reserve acted as financial advisor to Island One, Inc. in its reorganization by Timeshare Acquisitions LLC.
Island One, based in Orlando, Florida, is one of the largest privately-held timeshare developers in the U.S. At the time of the transaction, the company had grown from a single site to an organization that had acquired, developed and re-developed nine properties in Florida and the U.S. Virgin Islands. Island One’s affiliate, Club Navigo, allowed customers to gain access to a larger network of 29 affiliate resorts.
Initially engaged in 2009, Western Reserve represented Island One in a pre-bankruptcy recapitalization process and eventually a Chapter 11 bankruptcy case. During bankruptcy, Western Reserve executed both a bankruptcy recapitalization process and a fee for service sale process, producing the chosen reorganization partner, Timeshare Acquisitions LLC. Timeshare Acquisitions LLC is a holding company owned and formed by a hedge fund to acquire the reorganized equity interest in Island One. Western Reserve collaborated with the existing creditors and the reorganization partner to develop an innovative solution that was satisfactory to the bankruptcy court. Island One retained operation of its eight resorts in Florida and divested of certain other inventory and assets, and the company’s executive team remained intact.
Deborah Linden, Board Co-Chair of Island One, said, “Western Reserve was instrumental in finding and maintaining the interest of a capital partner that understands the industry and can integrate and implement our growth strategy. For the past 20 months, the team has provided great service and advice, helping our company to arrive at the best possible outcome for all vested parties. We are now financially and structurally well-positioned to capitalize upon a very deliberate strategy for growth.”
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GILTZ & ASSOCIATES
Western Reserve acted as exclusive financial advisor to Giltz & Associates Inc. in an Operating Partner (“O.P.”) Unit Exchange with Cedar Shopping Centers, Inc. (NYSE:CDR).
Giltz, based in North Canton, Ohio, develops, acquires, leases and manages retail and residential real estate throughout the Eastern U.S. Giltz sought to exchange 28 properties for cash and O.P. units and consummated a transaction with Cedar Shopping Centers in April 2005. Cedar is a self-managed real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeast U.S.
The transaction was valued at approximately $130 million. In addition to the property exchange, Cedar agreed to purchase future Giltz developments based on a Future Property Purchase Agreement, and Giltz continued to manage the exchanged properties for Cedar. The transaction provided Giltz with liquidity, tenant and geographic diversification, price appreciation and an income stream from management fees and quarterly REIT dividends. Western Reserve also helped close a loan collateralized by the O.P. units, providing a line of credit for future development. By accepting O.P. units, Giltz was able to defer tax liabilities and capital gains associated with the sale.
Harry Giltz, Chairman of Giltz, said, “The Western Reserve team was very creative in their approach, identifying and utilizing all the appropriate deal elements to address our needs. We appreciate their hard work on our behalf.”
In June 2007, Western Reserve acted as exclusive financial advisor to Giltz in its formation of a commercial real estate joint venture with Harbert Management Corporation.
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Western Reserve acted as exclusive financial advisor to Weston, Inc. in its formation of a real estate joint venture with Blue Vista Capital Management.
Weston is a Solon, Ohio based commercial real estate company established by Tony Asher in 1972 that offers acquisition, leasing and management services. At the time of the transaction, Weston’s portfolio had grown to more than 10 million square feet of industrial, office and retail space in more than 75 properties in nine states. The company managed each of its industrial properties and maintained relationships with 450 tenants primarily in the Midwest and Southeast. Weston was growing quickly and was poised for geographical expansion and diversification.
Western Reserve was engaged by Weston to advise in their formation of a joint venture, and in May 2008, Weston established the joint venture with Blue Vista. Founded in 2002 and based in Chicago, Illinois, Blue Vista co-invests with acquirers and developers of all real property types across the U.S. and in select international markets. The joint venture acquired value-added industrial real estate in Spartanburg and Greenville, South Carolina, as well as other parts of the U.S. These properties were well-positioned to capitalize on the dynamics surrounding the transportation, distribution and logistics markets. The transaction provided Weston with outsized returns generated from the negotiated joint venture promote structure, as well as an equity partner to execute its “value-add” strategy in Upstate South Carolina.
Edward Asher, Principal at Weston, said, “The Western Reserve team was with us every step of the way and did a terrific job in working through the many details of the transaction.”
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Western Reserve acted as exclusive financial advisor to The Ferchill Group in its sale of its Bridgeside Point property to The Inland Group.
Headquartered in Cleveland, Ohio, The Ferchill Group is a real estate development and management firm, acquiring, developing or redeveloping real estate assets, including office buildings, full-service and limited-service hotels and residential projects, in Cleveland, Akron, Buffalo, Detroit, New York and Pittsburgh.
At the time of the transaction, Bridgeside Point, valued at $31.5 million, contained the premier wet lab space in the Midwest. It was anchored by Cellomics, who occupied the facility on a 15-year, triple net lease basis, but enlisted the University of Pittsburgh Medical Center and the Pittsburgh Lifesciences Greenhouse as interim subtenants for its unutilized space. Bridgeside Point is located in close proximity to Carnegie-Mellon University and the University of Pittsburgh and represented one of the shining examples of the emergence of Pittsburgh in the medical and technology fields.
Bridgeside Point was acquired by The Inland Group in November 2005. Inland, headquartered in Oak Brook, Illinois, is one of the nation’s largest commercial real estate and finance groups, specializing in creating, developing and operating companies that provide real estate services, as well as developing and operating real estate-related investment funds to support those efforts. The transaction provided The Ferchill Group with valuable capital for deployment in its numerous other development projects.
Public REIT owning office and lab facilities
$58million private placement of common stock
Land developer & timeshare company
$110 million lead managed issuance of subordinated debt
Real estate developer and manager
Provided real estate consulting