Colo Development Partners was formed in 2016 with one goal in mind – allocate capital wisely within a specific geographic area. Our firm offers an exclusive and limited number of investors the opportunity to invest alongside our capital in commercial real estate through ground up development, rehabilitation of properties, and acquisition of existing buildings.
The team at Colo Development Partners has executed thousands of real estate transactions and allocated over $150 billion in capital collectively. We have been executives at large corporations, family offices, investment bankers, Wall Street traders and strategically decided to invest our time, resources, and capital in North Texas. While many firms focus on a specific product type within commercial real estate, we believe more value can be derived by investing with local knowledge across the commercial real estate spectrum. We do not invest in assets where the possibility of operator risk is high, but rather in assets in a great location with significant financial merit.
“What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.” – Warren Buffett
The investment activities of Colo Development Partners are built upon the following principles:
Local Knowledge: One of the biggest advantages to purchasing or building an asset is knowing the true market conditions and values. We know what areas are thriving and those that struggle. We know what product types are doing well and those where demand has subsided. We know what capital improvement projects are proposed or underway and how they may impact a property – positively or negatively. This knowledge is powerful for an investor.
Experience: Two questions should be asked before any investment decision: “Can we do this?” and “Should we do this?”. The second question of “Should we do this?” is experience. Our team has performed numerous real estate transactions and utilizes our prior deal experience coupled with extensive financial underwriting to answer these questions regarding any new investment. While an investment may make sense on paper, it still may not make a great investment. Our investment committee ultimately determines if a project is prudent based upon the investment returns versus the risk taken and the overall viability and success of the project.
Remove Operator Risk: We classify commercial real estate into two distinct areas: assets that require a specialized operator to provide successful operations and assets that provide a place for a regular tenant to conduct business. By focusing on assets that do not require a specialized operator we reduce our tenant failure risk. As such, we focus on industrial, retail, office, medical, multifamily, and land.
Invest Our Capital: The principals of Colo Development Partners invest their own capital alongside of our investors with no preferential treatment to our capital. We do not ask our partners to take risk that we are not willing to take for ourselves. Simply put – our interests are aligned.
The Oak Building
This premier, Class A office building presented a unique opportunity to acquire a single tenant asset at a significant discount and convert to a multi-tenant property. Our team was able to negotiate the purchase and have several tenants in place at closing to maintain full occupancy since inception. The conversion reduced the overall risk of the asset by not being dependent on one single tenant and increased the net operating income relative to the acquisition. Additionally, the building is situated in the middle of the northern growth corridor of Dallas/Fort Worth, one of the strongest economic climates in the country.
GameGuard Headquarters
Our team acquired through a sale leaseback transaction 17 acres on Interstate 35W with an exiting building serving as the global headquarters and distribution for GameGuard camouflage. Being developers, we have the ability to unlock the excess 15 acres of land that has favorable zoning and entitlements. Utilizing our local knowledge of Texas Department of Transportation I35W widening, we were able to establish access points and road frontage.
Teasley Commons
We acquired an existing multi-tenant retail center focused on neighborhood services with a diverse tenant mix and good operating history. The property presented an attractive investment opportunity with favorable lending conditions, solid tenant operation performance during the COVID-19 pandemic, dislocated market valuations, well maintained facilities, and strong demographic fundamentals. The ongoing active management by our team has increased the overall value during our ownership.
New experience, design, and innovation is at the very heart of any great development. As investors, we believe the union of financial prudence, risk management, return, and development is both a science and an artform. As developers, we work with a wonderful group of engineers, architects, contractors, brokers, and bankers to ensure the success of a project.
Within our specific geographic target area, the development capabilities of Colo Development Partners enable us to unlock value within the commercial real estate investment landscape that an acquisition-only focus would otherwise eliminate. The construction of new buildings will always be a thoughtful allocation in our portfolio.
Colo Development Partner’s participation in the local real estate market produces opportunities to develop properties on a build-to-suit or fee only basis. We evaluate these projects on an individual and selective basis to determine where our involvement would be beneficial.
