New Urban Properties is a real estate operating company with headquarters in San Francisco. We have been in business since 1998. The inevitable ups and downs of the market make us proud not only for our successes during good times but our ability to survive—indeed, emerge stronger—during difficult times. Please see our Track Record tab. We owe that longevity to the strong relationship internally between our two founding principals, along with a small but dedicated staff, and externally to our equity partners who, like us, know and love the industry.
As will be seen in the coming pages, we seek office buildings in the $8 million to $50 million range, concentrating our efforts in the Bay Area, Silicon Valley, Southern California and the Pacific Northwest. We adhere to the following disciplines for every asset:
New Urban Properties underwrites transactions using assumptions that are realistic and defensible. We require accurate assessments of capital needs, lease-up costs and achievable rents before pursuing an acquisition. Exit caps are projected at rates that reflect the true appetite of target buyers for the property.
While New Urban Properties has on-staff asset managers, the ultimate responsibility for each property during ownership resides in a principal of the company. Personal success is tied to project success.
While it is true that “the profit is made at acquisition”, it is equally true that the profit is most often lost during its subsequent management. Tenant satisfaction and local brokerage perception of an asset have a profound influence on both holding period cash flow and ultimate disposition pricing. Accordingly, we manage most of our assets.
Since our efforts are concentrated in select markets, we are intimately aware of the best exit strategy to dispose of an asset. Our strategies have included: Straight sale; conversion from office to residential and longer term hold.