Advalurem Group (AG), an institutional investment management firm focused on middle-market commercial real estate, provided sponsor equity to assist its operating partner, Block Real Estate Services (BRES) in the acquisition of Ranch at Pinnacle Point, a Class A, 392-unit apartment community located in Rogers, Arkansas. The partnership of AG and BRES purchased the asset alongside Balfour Beatty, a global leader in professional services, construction services, and infrastructure investment with more than $18 billion in annual revenues.
Ranch at Pinnacle Point, constructed in 2007, was built to institutional quality standards and features a luxury amenity package. The property is located in the affluent and growing submarket of Bentonville-Rogers, Arkansas and is less than 4 miles away from the corporate headquarters of Wal-Mart. The surrounding area boasts an abundance of neighborhood amenities, including award-winning schools, quality retail centers and outdoor and cultural attractions such as the Crystal Bridges Museum of Art, a $300 million museum funded by the Walton family. The asset was sold with an existing loan in place and because of the loan’s restrictive prepayment term, the partnership was able to invest at a favorable basis. The venture plans to add additional value through the optimization of effective rents and by improving curb appeal and upgrading select units.
Advalurem Group is a private real estate investment firm that specializes in providing equity for middle-market commercial real estate. The firm targets moderately sized real estate investments through joint venture structures and aims to become the leading capital partner of this market segment. The group invests across all major property sectors and along the risk/return spectrum with an emphasis on core-plus and value-added strategies. Advalurem Group is managed by real estate professionals who have extensive private equity and investment management experience. The firm is based in New York.
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