Albany Road Real Estate Partners   Boston Massachusetts

About This Sponsor

Albany Road Real Estate Partners is a Boston-based firm that was established in July 2012 by four partners committed to providing investors with attractive, risk adjusted returns.  The firm was established with an initial focus on acquisition opportunities across the Northeast.  Albany Road has since expanded its reach into the Southeast, with multiple holdings in Atlanta, GA and Nashville, TN, and the concurrent opening of a regional office in Nashville, TN.

  • Geographic Regions: Northeast, Southeast
  • Risk Profiles: Stabilized (5-8%), Value Add (8-12%)
  • Property Types Office, Retail / Shopping Center, Industrial, Self Storage, Mixed Use, Flex
  • Total Capitalization $400M
  • Gross Leasable Area 3,800,000 sqft

Company Overview

Albany Road Real Estate Partners is a privately held real estate investment and management company with offices in Boston, MA and Nashville, TN.  Established in 2012, Albany Road pursues a variety of product types, including but not limited to urban, suburban, and medical office, retail, industrial/R&D/flex, and self-storage.

Since its launch, Albany Road has acquired twenty-nine real estate assets having a gross asset value of approximately $400MM.  The acquired assets include 1.7 million square feet of urban and suburban office space, 1.4 million square feet of industrial/flex/R&D, 600K square feet of retail space, and a self-storage portfolio consisting of eight assets in CT and MA.

Through a group of affiliated companies, Albany Road oversees all aspects of the acquisition, finance, leasing, operations, and disposition of its portfolio properties.  Albany Road has aligned with major, third party property management firms to handle the day to operations of the properties including CBRE, DTZ and Colliers. 

Acquisition Criteria

Albany Road pursues investment opportunities priced in the $10,000,000 - $50,000,000 range. This is inefficient and fertile space in which to operate, as the deal size is typically too small for major institutional players to focus on and too large for the typical private operator to tackle.  The firm feels that the risk-return metrics found in this pricing range are notable.

Albany Road attempts to take advantage of the pricing inefficiencies found in this space to acquire assets that generate estimated net returns as follows:

  • Average Cash-on-Cash Yields: 11% - 15%
  • Average Leveraged IRR: 16% - 20%
  • Average Leveraged Equity Multiple: +/- 2X

Albany Road, as sponsor, capitalizes investments with a minimum of 10% of sponsor equity, with the remaining equity coming from either high net worth/family office and/or institutional equity.  The firm then leverages the investments with a 65% - 75% debt component to take advantage of today’s over-valued bond market and the historically low interest rates that continue to exist as a result.  Albany Road looks to acquire properties at a favorable cost basis at a discount to replacement cost, thus ensuring that the property will not have to compete (from a rental rate perspective) with any new development projects, when and if they were to be undertaken.

Albany Road pursues a variety of product types to accomplish our goals, including but not limited to (1) urban, suburban, and medical office, (2) industrial, (3) R&D, (4) retail, and (5) self-storage.  The firm prefers real estate with a consistent cash flow component, ideally coupled with some sort of repositioning story. This profile allows them to take full advantage of today’s credit markets and to generate the majority of returns via immediate cash-on-cash yields, as opposed to back-loaded residual plays.  They are also attracted to deals where at least 70% of the aggregate return is generated from property cash flow.

Additionally, the firm considers acquiring truer value-add product (vacancy, lease-up risk, etc.) if the story makes sense and the projected returns are commensurate with the risk.  Albany Road is willing to invest in secondary markets, in particular, those that have historically attracted institutional capital, in an effort to find deals that meet our investment objectives.

Moving forward, Albany Road expects to see many attractive commercial real estate investment opportunities for an extended period of time, given the fledgling and fitful economic recovery and the resulting and continued pricing disconnect in the real estate market (i.e., pricing of core product in core markets versus secondary markets).

Portfolio

Number of Properties 29
Gross Leasable Area 3.75 Million SF
Gross Asset Value $400 Million
Estimated Annual Net Operating Income $30 Million
Average Portfolio Rent / SF:  
Industrial $4-$8/SF, NNN
Office $17-$35/SF, gross
Retail $7-$18/SF, NNN
Major Tenants in Portfolio Caremark/CVS (149,856 SF)
  ServiceSource (120,685 SF)
  Kmart (88,425 SF)
  Allied World Insurance (66,626 SF)
  Stop & Shop (59,287 SF)
  Berstein Shur (56,275 SF)
  Moore Medical, LLC (49,388 SF)
  AIG (66,626 SF)
  Sports Authority (42,078 SF)
  CAS Medical Systems, Inc. (41,907 SF)
  Noble Systems Corporation (41,520 SF)
  Paradeis (38,053 SF)
  Liberty Mutual Insurance (35,649 SF)
  Berry Dunn (35,578 SF)
  Dornier Med-Tech America (35,059 SF)
  Admirals Bank (34,620 SF)
  Standard Parking (33,257 SF)
  The American Athletic Conference (32,802 SF)
  United Healthcare (32,567 SF)
  Capstar Bank (30,813 SF)
  GSA- U.S.A. Attorney (30,620 SF)
  Ocean State Job Lot (30,030 SF)

Case Studies

Albany Road Real Estate Partners has not added any case studies.

Executive Team

Christopher Knisley
President

Chris is the President of Albany Road and one of its four founding partners.  For the past 25 years, at firms including Copley Real Estate Advisors, Berkeley Investments, and The Koffler Group, he has been involved in all facets of the commercial real estate industry, including acquisition, development, asset management, equity raising, financing, and disposition work.  Chris is a graduate of Deerfield Academy, Vanderbilt University (BA Economics), and The Owen Graduate School of Management at Vanderbilt University (MBA Marketing). 


Scott Cloud
Managing Director

Scott is a Managing Director at Albany Road, and he is responsible for leading the company's Southeastern acquisitions and operations efforts.  Scott has over 15 years of capital markets experience and has been involved in multiple disciplines in the commercial real estate industry, including acquisition, disposition, development, and asset management work.  Before joining Albany Road, Scott was the Senior Vice President of Investment at Carter & Associates, an Atlanta-based real estate investment and development firm.  Scott is a graduate of the University of Alabama (BA Finance) and the Hough Graduate School of Business at the University of Florida (MBA Finance)


Bruce Nolen
Managing Director

Bruce is a Managing Director at Albany Road, and he is responsible for the company's asset and portfolio management activities.  Bruce has worked in the commercial real estate industry for 27 years, at firms including Griffith Properties, Northland Investments, and REIT Management & Research.  During this time, he has been involved in the day-to-day management of large portfolios of properties, with full responsibility for all leasing and marketing activities and building operations.  Bruce is a graduate of the University of Colorado (BA Arts).


Mark Tryder
Vice President

Mark is a Vice President at Albany Road.  He has 12 years of commercial real estate investment experience in disposition, valuation, acquisition, and asset management.  Before joining Albany Road, he worked as both a Portfolio Analyst and an Assistant Controller at Colony Realty Partners.  Mark is a graduate of Providence College (BS Accounting) and the Carroll School of Management at Boston College (Masters in Finance).  He has also been a licensed CPA in Massachusetts since 2006.


Jeff Burke
Controller

Jeff is Albany Road’s Controller.  He has 10 years of financial accounting and reporting experience and is responsible for all of Albany Road’s financial activities.  Prior to joining Albany Road, Jeff was a Manager at PKF, P.C., an auditing and tax firm in Boston.  Jeff is a graduate of the University of Massachusetts - Amherst (BBA Accounting), has been a licensed CPA in Massachusetts since 2010, and is a member of the American Institute of Certified Public Accountants (AICPA) and the Massachusetts Society of CPA’s (MSCPA).

Press

Albany Road NH Buy Propels Firm Past $500M-Milestone in RE Value

February 18, 2016 The Real Reporter

In one of New Hampshire’s largest CRE transactions of the decade, Albany Road Real Estate Partners has acquired a 509,000-sf business park at Interstate 95 here for a consideration of $51.0 million in a just-completed off-market agreement, with financial backing from Citizens Bank to the tune of $43.7 million. ... read more


Boston real estate firm pays $35M for one of Portland’s ‘most significant’ office properties

April 21, 2015 Mainebiz

Boston-based real estate investment and management firm has purchased what brokers are calling one of Portland’s most significant high-quality office properties.... read more

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