Case Studies

Case Studies

Millennium Apartments – LEASED FEE (Creation of Ground Lease and Fee Acquisition)

BH Properties will purchase the land under well-located commercial real estate with a minimum investment of $10 million.  When combined with competitive leasehold financing, an equity investor can generate greater cash-on-cash returns


  • 298-unit apartment in Fort Myers Florida

Ground Lease Parameters:

  • Fannie Mae approved Ground Lease
  • 99 year lease term
  • Annual rent escalations; periodic CPI adjustments
  • Absolute NNN
  • Leasehold owner has a purchase option to buy the leased fee

Transaction Size:

  • $30,000,000 (Leasehold Acquired for $34,000,000 simultaneously)


  • All cash (Leasehold buyer utilized $24,300,000 10-yr Fannie Mae loan – >84% LTV)
  • Closed in 10 days! (signing of LOI to closing)


BH Properties has excellent experience in working with Sellers that are looking to dispose of assets but need flexibility in leaseback structure or transactional timing. In 2015, BH Properties acquired a portfolio of Radioshack’s industrial assets as part of their liquidation strategy. After receiving bankruptcy court approval, BH purchased the 1.8 million square foot portfolio, which was comprised of 5 warehouse properties in Fort Worth, TX and one in Sacramento, CA. Read more…


In 2016, BH Properties closed on a $338 million acquisition of leased fee positions under three hotels in Manhattan, New York. The trio of holdings was a portfolio held by Lexington Realty Trust and included the 411-key, 40-story Element hotel at 311 W. 39th St. in Midtown, the 369-key, 21-story Sheraton Tribeca at 370 Canal St., and a 399-key, 43-story Doubletree Hotel at 8 Stone St. All three hotels were built in 2010, opened in 2011 and were stabilized in 2012. Read more…


In January 2017, BH Properties purchased Golfsmith’s headquarters in Austin, TX as the stalking horse bidder in a bankruptcy sale for $20.5 million. The HQ is a four-building, 332,345 square foot property situated on a rare 40-acre lot in Austin. One of the buildings, comprised of about 93,000 square feet, was used by the sporting goods equipment retailer as a combination of office and retail space while three of the buildings – about 239,000 square feet, were used for manufacturing and distribution facilities. Read more…


In January 2013, BH Properties acquired a 163,048-square foot property situated on a 14.5-acre site in Riverside, California for $10.0 million. The two-story building was originally constructed in 1983 and was formerly used by AT&T as a call center for its Yellow Pages business. The property is well-located at the base of the Box Springs Mountains with close proximity to multiple major Southern California freeways, providing easy access from all over Riverside County. Additionally, the Property features abundant surface parking with 1,200 stalls at a ratio of… Read more…