Prioritizing Capital Investments in Value Add Acquisitions
TI Group, a global real estate private equity firm, was looking to quickly increase net operating income in their value add acquisitions. Due to hold periods of 3-5 years, many technologies focused on “back-of-house” operations hadn’t offered the type of payback period necessary to warrant an investment.
What We Did
TI Group management believed there was an opportunity to boost NOI through cost-cutting measures and smart capital investments in their Greenway Tower, a 200,000 sq ft Class B office asset in Irving, Texas. Enertiv deployed a number of sensors in the tower to track equipment performance and enabled remote building access for the portfolio’s top engineers.
How It Turned Out
The data led to a number of insights that added up to over $80,000 in NOI (over $1M in asset value at a 7% cap rate).
As importantly, TI Group management was able to understand the “blueprint” for how building data can be leveraged in every new value add acquisition.
“The first phase results have been better than I could’ve hoped for. Now that I have a blueprint for success, it’s a no-brainer to roll the Enertiv Platform out across the portfolio.”
