Press Release - 08/09/2016
LP Equity Expands Acquisitions to Commercial Real Estate Interests
WASHINGTON, Aug. 9, 2016 /PRNewswire/ -- LP Equity, LLC ("LPE") is pleased to announce its recent acquisition of minority interests in two commercial properties, an investment which embodies LPE's increasing engagement with the commercial real estate sector. The properties, located in New Jersey and Texas, range in function from medical office space to commercial retail, well outside the typical purview of LPE's acquisition platform. Over the past 11 years LPE has focused exclusively on acquiring limited partner interests in multi-family housing assets, purchasing interests over 300 different partnerships in 28 states in total; however, with these second quarter acquisitions LPE has initiated a new line of investment meant to engage a heretofore underrepresented group of limited partners, a move LPE's Senior VP Jay Landen sees as a natural extension of LPE's overall directive.
"Our new platform will act to fill a void in this industry which is very esoteric by nature. Ultimately, it will allow us to create immediate value for a new swath of limited partners throughout the country, many of whom have been in partnerships for over 30 years due to the lack of any viable exit strategy. We are continually working to expand the scope of this secondary market where incremental partnership interest can be sold quickly and painlessly."
In order to maximize their engagement with the commercial market, LPE has recruited Eric Goldfarb, previously of Goldfarb Properties in New York, to head the fully funded platform. Senior VP Adam McNutt sees this collaboration as
"When we started thinking about this new line of investment we knew we needed to bring in someone with an extensive knowledge of the industry. Eric's 25+ years of commercial real estate experience will be key in allowing us to quickly and accurately evaluate the liquidation options of the hundreds of partners we hope to work with over the next several years. It's critical that we get our investors comfortable with the assets we acquire, and industry knowledge becomes key at that point; you simply can't survive in the minority acquisition market unless you can confidently understand the structure of each partnership and the value of the underlying assets."
Eric Goldfarb has said the following regarding this new collaboration with LPE:
"I am honored and excited to be a part of LP Equity for three primary reasons: first, LP Equity has a reputation for honor and integrity that is without repute; second, it is always satisfying and rewarding to be able to provide a service which offers real benefits to so many people; and third, the company has put everything in place, financially, to ensure a complete follow-through with this new venture. I believe success is best achieved by aligning yourself with the right people and I think we have done that here."
Although LPE has continually expanded the focus of its investment, the effort to bring opportunities to a diverse array of limited partners has remained constant, an effort that is facilitated by LPE's ever-growing and increasingly diverse portfolio. Summing it all up, Adam McNutt had this to say:
"You have to believe in your knowledge of a particular market, accept the risks, and then make meaningful proposals; we're not in the business of making frivolous offers, we're in the business of acquiring interests."