Our Acquisition Criteria
We are good stewards of our properties. We strive to have a positive impact within neighborhoods and communities where we own property.
Our acquisition criteria starts with our need to like the property and its surrounding neighborhood while having a bullish outlook for the submarket. We use rigorous financial analysis in underwriting all our deals, and we follow a standardized due diligence process. Prior to closing, we develop a risk management plan. We maintain a strong balance sheet behind all our deals.
At this time, we are focused on acquiring commercial real estate within the Memphis MSA and surrounding region, but we will consider acquisition of commercial real estate assets in growth MSAs located in Tennessee, Alabama, Mississippi, Arkansas, Missouri, and Kentucky. Do you have a commercial property you are looking to sell? Feel free to complete an inquiry form on our Contact page if you would like us to evaluate your property as a potential acquisition.
Primary
Asset Types: Office/Flex
Property Class: B, C
Investment Strategies: Value-Add
Geography: Memphis MSA
Minimum Size Deal: $1,000,000
Maximum Size Deal: $5,000,000
Secondary
Asset Types: Medical
Property Class: A, B
Investment Strategies: Core Plus / Value-Add
Geography: Memphis MSA and Surrounding Region
Current Holdings
HAPGOOD CAPITAL offers CRE investment opportunities to Accredit Investors. Our unique investment offerings enable our investors to increase the returns on their investment portfolio while providing them with greater diversification and reduced exposure to volatile securities markets. The properties below represent our current holdings. Future acquisitions will target larger commercial buildings.
Description: 4400 SF professional office building.
Location: 747 Timber Creek Dr, Cordova, TN 38018
Submarket: Northeast Memphis (South Cordova)
Type: Professional Office Building (built in 1995)
Class: C
Investment Strategy: Light Value-Add
Improvements: New roof & gutters, new HVAC systems, re-painted exterior, new entry doors, all office suites renovated, landscaping, and parking lot.
Acquisition: November 30, 2017
Projected Disposition: 2026
Gross Rent: $5,900 (income-stabilized)
Projected IRR: 16.7%
Former Holdings
Description: 6250 SF professional/medical office building, four office suites
Location: 6500 Stage Rd, Bartlett, TN 38134
Submarket: North Memphis (City of Bartlett)
Type: Professional/Medical Office Building (built in 1987)
Class: B
Investment Strategy: Light Value-Add
Improvements: Landscaping, parking lot, new HVAC systems, re-painted common areas, two office suite renovations, and selected window and door replacements.
Acquisition: June 21, 2019
Disposition: June 21, 2024
Gross Rent: $8,400 (income-stabilized)
Realized IRR: 20.4% (65% LTV, 5-yr hold)
Residential Portfolio
Acquisition: Acquired 34 Memphis rental houses in 2013-2017.
Disposition: All rental houses were disposed in 2018-2024.
Average Cash-on-Cash Returns: 11.3%
Realized Equity Multipler: 2.2 (on a 10-yr hold)
Realized IRR: 10.2% (on an unlevered basis)