Overview
MacKenzie Investment Group, LLC is a real estate investment firm founded by Michael Bradley and MacKenzie Ventures, LLC in 2018. The opaque inefficient nature of real estate rewards diligent research and deep industry contacts. The yield driven, tax advantaged, and inflation hedged nature of the asset class makes it a highly desirable place to invest through a variety of cycles and particularly at a time when interest rates are historically low. The unrivaled scale of the asset class ensures there are plenty of opportunities for those organized, connected, and active in the market.
Our strategy is focused on Value Add and Opportunistic investments. The structure of our firm allows us to be fast and nimble when strong opportunities are identified. The corporate structure provides us with the patience to pass on opportunities with unnecessary risk. We are not compensated through volume-driven management fees, which allows us to be selective in the opportunities we pursue. Moreover, we always invest alongside our limited partners to reinforce our belief and commitment every time capital is deployed.
Experience
0
attached and detached building lots0
million square feet of industrial0+
multifamily units in 37 projects0
million sf of existing assets and through third party contracts managed by principals0
person firm owned and controlled by principals0
million square feet of officeStrategy
We are focused on returns across the risk spectrum from value added to opportunistic with a focus on asset classes with lower volatility. Our investments are thoroughly researched and asymmetrically balanced in favor of reward, but our strategy does require a moderate tolerance for risk. Capital is matched with each opportunity based on risk tolerance, desired holding period and current investment philosophy.
We focus on growing markets with room to run on rent growth and demographics. We tend to avoid fortress cities and markets that mostly attract larger institutional investors with more and cheaper capital to deploy. Our focus is from the mid-Atlantic through the Southeast. Emphasis is placed on job growth, population growth, and municipal fiscal discipline. The principals have all been in business for more than 20 years, are well-networked through past activity and partnerships in each market.
Our performance-based compensation model means that we invest exclusively when we have conviction. We do not have pressure to deploy capital for the purpose of collecting management fees. The majority of our opportunities evolve from pre-existing relationships established over decades and are often off market in nature.
Deployment of capital only marks the beginning of our involvement. We are highly involved in asset management throughout the holding period and deploy the talents and services of an in house 200-person organization. The ability to add value is our key strength and thorough execution ensures that we maximize returns for our investors.
We keep an open mind, investing across various property types and all asset classes. This approach allows us to capture strong secular tailwinds. This variety of experience also allows us to identify distressed deep value opportunities during periods of dislocation.
We take pride in developing enduring relationships. This is exemplified through honesty and integrity, as well as through more structured ways, such as above-market compensation incentives. In addition to being the right thing to do, it is good business, often providing access to better opportunities and better talent.
Representative Investments
McCormick & Co., Inc. Global Headquarters
Office
A renovation and reposition project that included the pursuit, award, and development of McCormick’s Global Headquarters building in Hunt Valley, Maryland. Project size necessitated the acquisition and gut renovation of a former Verizon Headquarters location and central office telephone and fiber switch located on 20 acres in the heart of Hunt Valley. The project was key in maintaining McCormick’s commitment to the state and its 1,200 jobs. Total project equals 360,000 square feet and an investment of $125 million.
Crossroads Distribution Center
Industrial
CDC is an industrial development project on low basis industrial land acquired from an investment fund in liquidation. The low basis land allowed the venture to construct speculative warehouse facilities at an attractive rental basis for prospective tenants. The project commenced in November 2018 and was fully leased to W.W. Grainger, Inc. in March 2019. The second phase of 235,000 square feet is under construction for delivery in mid-2021. Total project equals 535,000 square feet and an investment of $35 million.
North Richmond Industrial Park
Industrial
MIG has joint ventured on a multi-phase industrial development project in Ashland, Virginia. Project is set on 70 acres and suitable for 500,000 square feet. The initial 202,500 square foot Phase I is under construction effective fourth quarter 2020. Total project at full build out equals 500,000 square feet and an investment of $38 million.
2500 West Park Drive
Industrial
MIG acquired a 759,000 square foot fully leased bulk warehouse in a North Atlanta submarket in November 2018. The existing credit tenant lease only had two years remaining on the term. MIG was able to renew the tenant for a term of 6 years. Project was acquired for an 8.0% yield on cost. Building is in the process of being sold to an institutional money manager at a 5.8% yield on cost. Total project equals 759,000 square feet and $26 m.
Quarterfield Health Center
Healthcare
MIG acquired a pre-foreclosure note on the Quarterfield Health Center in February 2019. The project was 100% leased and owned by an entity that was unable to refinance the asset with a hard money lender. The project is in the process of being repositioned, including the investment of approximately $2 million in capital improvements. The acquisition came with a vacant out parcel that is currently being marketed for sale or lease. Total investment of $10 million on 40,000 sf.
North Park
Office
MIG acquired North Park in May 2019. The asset was approximately 92% occupied at the time of purchase. The purchase price equated to a 9.0% yield on cost on current income. At the time of acquisition the partnership was able to procure long term 10 year fixed rate debt at 3.75%. During the 24 months post acquisition the asset has received upgrades to the common areas, elevators, parking area and the establishment of a 2,000 square foot conference center for use by the tenant base.
Select Bridge and Mezzanine Debt Opportunities
Credit
MIG has programmatically and selectively originated 5 credit facilities totaling approximately $20 million for the acquisition of land and building lots throughout the Southeastern United States. The credit facilities are either first mortgages, mezzanine debt or preferred equity. Markets have included the suburbs of Atlanta, Charlotte, and Nashville. It is anticipated that these opportunities will continue to present themselves for the foreseeable future.