ANNOUNCING PARALLEL CAPITAL PARTNERS

by Dan Peoples | Oct 25, 2012

April 1, 2012

NEWS FROM:  Parallel Capital Partners, Inc.

FOR INFORMATION: Matt Root, Parallel Capital Partners, 858-882-9506
   Jim Ingebritsen, Parallel Capital Partners, 858-882-9504
   Dan Peoples, Peoples & Company, 858-552-1456

Parallel Capital Partners Created to Acquire Value-Added and Core Plus Commercial Real Estate

– New Firm Focused on Opportunities in Western United States and Hawaii –

San Diego, Calif.  Parallel Capital Partners, Inc. (“Parallel”) has announced its formation as a fully-integrated real estate investment and operating company focused on value-added and core plus commercial real estate acquisitions in major markets in the western United States and Hawaii.  Headquartered in San Diego, Parallel has additional offices in Orange County, Phoenix and Honolulu and 29 full-time employees.

Parallel’s objective is to capitalize on value-added and core plus opportunities through select investing in real estate equity, debt and operating company re-capitalizations, with a focus on properties whose potential upside can be realized through improvements, restructuring, and superior leasing and management. This strategy allows the company to maximize the value of the underlying assets, migrating them from value-added opportunities to stabilized core properties, and to seek enhanced risk-adjusted returns through a disciplined disposition strategy.

Parallel will focus primarily on long-term growth markets within the western United States and Hawaii that have 1) high barriers to entry for the development of new commercial buildings; 2) a reputation for a high quality of life; and 3) a history of long-term job formation.  Parallel has concluded that high barrier-to-entry markets tend to maintain their supply and demand balance, have historically produced more predictable rental rate growth and tend to offer greater protection during an economic downturn or from supply side risk.

As the successor to the West Coast operating arm of The Shidler Group, one of the nation’s foremost commercial real estate organizations, the founding partners of Parallel, Jim Reynolds, Matt Root, and Jim Ingebritsen lead a seasoned management team.  During the 20 years they were Managing Partners of the West Coast Shidler Group platform, they acquired, financed, operated and disposed of over 20 million square feet of real estate assets valued in excess of $4 billion, predominantly located on the West Coast and Hawaii.

According to Matt Root, CEO, “Dislocation in the global real estate and credit markets has presented compelling investment opportunities. Our new company will capitalize on this unique economic environment by acquiring undervalued, high-quality assets at a significant discount to historic values and replacement costs. In addition, we will actively pursue structured real estate debt, including the acquisition of subordinate loans secured by institutional-quality assets.  The Company will endeavor to make investments that meet its return objectives over an expected average holding period of three to seven years, at which time we expect to sell and reinvest the proceeds from each asset.”

An added dimension to the new company’s approach will be a focus on acquiring real estate in partnership with institutional co-investors.  The founding partners have a long history of sourcing and fostering strategic relationships with institutional co-investors, successfully completing 45 separate ventures valued at over $1.5 billion.  Their proven ability to structure transactions, create value and mitigate risk has resulted in successful joint ventures with institutional co-investors such as Angelo, Gordon & Co., GE Capital, Starwood Capital, Allstate, The Praedium Group and Invesco.