Press

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Deals bring total transaction volume to over $85 million for NAI Partners’ private equity arm

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NAI Partners’ Landlord Services Division awarded management and leasing assignments for 216,000 sq. ft. worth of new properties

Houston, TX, February 13, 2019 – NAI Partners’ Investment Fund has finalized its Fund II portfolio with the recent acquisitions of Leghorn Service Center, a 66,530-sq.-ft. industrial building in Houston, Texas; and Clear Lake Business Center, a 149,305-sq.-ft. flex park in Webster, TX.

Leghorn Service Center is located in the heart of Northwest Houston, a hotspot for recent industrial activity. Clear Lake Business Center is directly adjacent to Highway 3 in Webster, Texas. Both are currently about 80% occupied. NAI plans to implement its hands-on ownership program to improve the cashflow and occupancy at both properties while enhancing the tenants’ overall experience.

With the closings, NAI has fully deployed its most recent fund, NAI Investment Fund II, a value-add investment vehicle that closed fundraising in March 2018. NAI’s total portfolio between Fund I and Fund II consists of eight properties spanning three markets and three different product types. The total portfolio size is 656,000 sq. ft. and the total assets under management exceed $75 million.

NAI is currently raising its third fund, NAI Investment Fund III, which is 75% subscribed and aims to close the fund in March 2019. The group is looking to raise between $25 million and $30 million in equity in order to continue implementing its successful value-add strategy around the major markets of Texas. Earlier this year, NAI set the goal of building a portfolio of $1 billion of assets under management within the next five years. “We feel like we have barely scratched the surface of our platform’s capabilities,” said Andrew Pappas, Senior Vice President of the NAI Investment Fund. “Our team is laser-focused on leveraging technological sophistication that leverages proprietary data combined with financial acumen and decades of market experience from NAI’s market experts in order to generate value for our investors. We are very excited about what the future holds for our platform in 2019 and beyond.”

Andrew Pappas, Adam Hawkins, and John Nolan of NAI Partners’ Investment Fund negotiated and closed the deals. NAI partnered with Kevin Hassenflu of Amegy Bank for debt financing, with equity funded exclusively by NAI Investment Fund II. The seller was Berkeley Properties.

Jennifer Gourlay and Amy Ivy of NAI Partners’ Landlord Services division will manage the properties, with NAI Partners’ Lesley Rice and Andy Parrish leading the projects’ leasing efforts.

For additional information regarding the NAI Investment Fund platform or NAI Investment Fund III, please contact Andrew Pappas at 713.629.0500.

About NAI Partners

Houston | Austin | San Antonio

NAI Partners is the 5th-largest Houston-Area Commercial Real Estate Brokerage, the #1 Mover of Square Feet among leasing and sales brokerages, the largest independently owned and among the largest owner-operated commercial real estate firms in Houston, Texas, per The Houston Business Journal. NAI Partners was founded and is headquartered in Houston and has offices in San Antonio and Austin; offers the geographic expertise to complete real estate transactions throughout the state of Texas; and can leverage the power of the NAI Global network to arrange deals in any location throughout the world. NAI Partners employs more than 100 real estate professionals, and arranges more transactions than any of its competitors, completing over 500 commercial lease and sale arrangements every year. NAI Partners is a full-service firm offering client leasing and sales solutions in the areas of office tenant representation, office landlord representation, industrial tenant representation, industrial landlord representation, landlord services, retail services, property management, investment sales, an investment fund, and project management, among other services. The company has been named a Best Place to Work by the Houston Chronicle, Houston Business Journal and Austin Business Journal, and is among the University of Houston’s Cougar 100 Fastest-Growing Companies.

Commercial real estate in Houston, Austin and San Antonio. NAI Partners offers full-service commercial real estate solutions to Houston, Austin and San Antonio, and has been serving the Houston commercial real estate needs of its clients for more than 20 years. We specialize in finding office space, industrial space and retail space, and can arrange an office lease, industrial lease or retail lease for your company. Our brokers help tenants and landlords or property owners of any size find the perfect real estate space or location for their business needs. For more information, contact us today.