New Investment Firm Seeks Single-Tenant Buys
Correction (July 29, 2003): Stonewater Partners will focus its initial
investments on single-tenant office and industrial properties. Also, David Stade,
one of the firm's principals, was formerly co-head of Eastdil's
single-tenant/corporate services practice in Los Angeles. The story below
misidentified the sectors, and Stade's title at Eastdil.
By Susanna Potter, Commercial Real Estate Direct Staff Writer | July 28, 2003
Two former Eastdil Realty investment-sales brokers have jumped to the buy-side,
forming an investment firm that will pursue single-tenant office and retail
properties.
The two professionals, Jeffrey Toporek and David Stade, recently left Eastdil
and formed Stonewater Partners, which has offices in New York's suburbs and Los
Angeles, where the two principals are based.
Toporek had been a managing director in Eastdil's New York office until he left
on June 30. And Stade, who is based in Los Angeles, had been co-head of
single-tenant office and retail properties at the firm.
Stonewater is seeking to buy single-tenant office and industrial properties in
both urban and suburban markets across the United States. The company is
targeting Class-A and Class-B properties, with tenants that have two to 10 years
remaining under their leases. Its game plan is to negotiate longer-term leases
with tenants, making the properties more valuable, and then either selling or
refinancing.
The company will work with outside investors to make its acquisitions, which are
targeted to range between $2 million to $150 million per deal, including
property-level leverage of about 75 percent.
Stonewater will consider deals with tenants who have investment grade and
sub-investment grade credit ratings. It also will consider sale-leaseback
structures and longer-term leases. Its plan is to build a portfolio of
properties that has credit, industry and geographic diversity.
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