INTRODUCTION to MSC

Focused on developing communities that are affordable, inclusive, and sustainable.

MarketSpace Capital is a Private Equity Real Estate Firm that focuses on sourcing value- add commercial real estate investments for its capital partners and attainable housing for our residences. Through its relationships, expertise and disciplined, data-driven analysis, the company’s veteran staff has the capability and experience required to maximize value creation through a comprehensive, programmatic and conservative investment philosophy and asset management approach. In addition to producing consistent returns on its investments, MarketSpace Capital seeks to create a positive, economic impact and long-term value for its investors, its properties and the communities in which they serve.

Through the experience of a myriad of veteran real estate professionals and its team of advisors and consultants, MSC and its Co-Developers can source, analyze and execute on a large universe of investment opportunities. These investment opportunities have historically ranged from a core competency of value creation by taking retail, commercial and raw land, and providing a path forward through entitlement, development and construction, as well as a value-add and opportunistic investment strategy by seeking out those investments where the Company’s speed, creative structure and nimble resource deployment can capitalize on distressed or opportunistic situations (the “Investment Strategy”).

✓ PROGRAMMATIC INVESTMENTS

✓ OVER 25 YEARS OF EXPERIENCE

✓ PERFORMANCE
TRACKING

MSC BY THE NUMBERS

Cummulative Acquisitions and Property Transactions / Fiscal Year

2012

$ 0 M

1 Property

2013

$ 0 M

1 Property

2014

$ 0 M

1 Property

2015

$ 0 M

1 Property

2016

$ 0 M

3 Properties

2017

$ 0 M

5 Properties

2018

$ 0 M

6 Properties

2019

$ 0 M

12 Properties

2020

$ 0 M

16 Properties

Current Portfolio overview

Over the past decade, MarketSpace Capital (MSC) and its leadership team have invested in seventeen properties totaling over $300MM in overall asset and development values. Of these seventeen separate investments, MSC has gone full cycle on six of these properties.

Q3, 2021

Dr. Kalkan newest offering

THE HOUSTON PORTFOLIO

MULTIFAMILY

Purchase price:
35,560,500

Q1, 2020

THE SPOT @ MYRA PARK

MULTIFAMILY

Purchase price:
$47,000,000

Q1, 2020

THE SPOT @ ANDERSON

MULTIFAMILY

Purchase price:
$14,700,000

Q4, 2019

MAIN & WEST

MULTIFAMILY

Purchase price:
$44,200,000

Q1, 2019

Life at Spring Estates

MULTIFAMILY

Purchase price:
$48,045,000

Q1,2019

World Houston Office

OFFICE

Purchase price:
$1,995,000

Q1, 2018

Zachry Office Building

OFFICE

Purchase price:
$16,800,000

Past Portfolio performance overview

Sold in Q4, 2021
Sold in Q3, 2021
Sold in Q2-2021
Sold in Q1-2020
Sold in Q3-2018
Sold in Q2-2018
Sold in Q3-2017
Sold in Q2-2017
CLEAR CREEK APARTMENTS
The Clear Creek Apartments are located in the Overland submarket in Johnson County. Johnson County is one of the most desirable places to live in Kansas City with plenty of high-paying jobs and abundant retail and entertainment options. The submarket has been the primary beneficiary of job movement from Missouri to Kansas in recent years and has the highest concentration of office space in the metro. The Property is surrounded by lush, green areas and mostly single-family homes. The Apartments are walking distance to the Lady Overland Golf Course and is close to major thoroughfares- I-35 and Hwy 69.

This represented another strong value-add opportunity for revenue growth and capital appreciation through execution of interior and exterior renovations in order to capture the full potential of the property through the Sponsor’s in-house management team.



Property Category: Value Add


LURE APARTMENTS
The Lure Apartments are located in one of the most sought-after locations by millennials in the Dallas-Fort Worth Metropolitan Area. The property is close to major thoroughfares I-35E and Dallas North Tollway and is within 3 miles from Highland Park, the most affluent market in Dallas. The area south of Mockingbird Lane benefits from being close to the Medical District as well as the vibrant neighborhoods in the Uptown/Park Cities Submarket. Class A properties in this submarket command some of the highest rents in the metro at nearly $1,400/month. Northwest Dallas is becoming increasingly attractive to those priced out of the Uptown/Park Cities area.

This investment presents another strong value-add opportunity for revenue growth and capital appreciation through execution of interior and exterior renovations in order to capture the full potential of the property through improved on-site management with the Sponsor’s in-house management team.



Property Category: Value Add
Plata 47 Apartments
With a prime location right off the strip in Las Vegas and one of the top tier assets in the market, Plata 47 presented a strong value add opportunity. MarketSpace Capital acquired Plata 47 with a $77,800 investment all of which was equity as part of a co investment with Nitya Capital.

Despite the downturn of the hospitality industry in Las Vegas due to Covid in 2020, the property was able to maintain high occupancy, collections and realize significant rent increases on renovated units. The property was ultimately positioned as the nicest place to live in the market for the best price. The property was bought at a very strong discount and with demand for assets very high in the region, cap rates continued to compress creating an opportune time to capitalize on a disposition.

In April of 2021 the property was sold, and MarketSpace Capital saw a return in equity of $134,722 resulting in an IRR of 29%.



Property Category: Value Add
IRR: 29%
Katy Freeway Shopping Center
Strategically located at I-10 freeway at Kirkwood Road, and amidst irreplaceable highway frontage in the heart of Memorial, the Katy Freeway Shopping Center presented a light value add investment that would generate low risk returns. In October 2017 MarketSpace Capital purchased the Katy Freeway Shopping Center for 5 6 million with 1 6 million in equity and 4 million in debt from River Oaks Bank.

Opportunistically acquired on a 1031 exchange, the Katy Freeway Shopping Center was a solid option to redeploy capital on a tax free basis and generate strong returns that could be used on future investments While this property was under ownership, there was a series of high profile tenants including Gyu kaku (a Korean barbeque) and Churroholics (a Churro based ice cream food truck) Tune up(salon for men) and a 20 year lease renewal with Clear Channel Outdoor.

In January of 2020 MarketSpace Capital sold the property for 6.25 million generating 2.25 million in equity and a corresponding IRR of 16%.


Property Category: Retail
IRR: 16%
Katy Freestanding Dental Office
Purposefully located in the heart of one of the premier submarkets, Katy Freestanding dental office was the perfect fit to meet the high demand for second generation dental offices in the area, across from Taylor High School. Marketspace Capital acquired this vacant former dental office of 2,400 square feet in July of 2016 at $543,500 with a total investment of $630,000 at an all cash basis.

Following a series of capital improvements, including a roof replacement. The property was able to generate consistent cash flows by securing a 10 year net lease. After an initial 8 month period where the new tenant occupied the property, the Dental Office was able to generate a net cash flow of $5,250 per month.

MarketSpace Capital ended up taking the property to the market in September 2018 and with a Cap-Rate of 6.25%, the property sold for $950,000 generating an IRR of 31% for investors.



Property Category: Office
IRR: 31%
Former Family Dollar
Acquired on the Ten X auction platform at well below replacement value, the former Family Dollar was an attractive value add investment that could easily be flipped for a profit following minor renovations. In August 2017, MarketSpace Capital acquired Former Family Dollar, a 9,180 square foot development, with a total investment of $480,000 at an all cash basis.

Following minor repairs to the roof, painting the exterior of the building, polishing the floors, replacing the electric panel and reconnecting the electricity, the property was able to be flipped to another investor in less than a year. Even without any tenant, the property was able to be sold as a vacant building and generate substantial returns. MarketSpace Capital sold the property in June of 2018 for $580,000 generating an IRR of 26% for investors.





Property Category: Retail
IRR: 26%
Pinemont Shoping Center
Acquired at a very strong discount relative to comparable properties and well below replacement cost, the Pinemont Shopping Center was a profitable value-add project. In October 2016, MarketSpace Capital bought the 11,400 square feet shopping center (which includes a 3,400 square feet warehouse) for $585,000 on an all cash basis.

MSC acted as the GC in repairing the parking lot, repairing and painting the building exterior, repairing the roof, and replacing HVAC units. All leases were month to month and well below market rate. MSC was able to increase rents substantially and double the cash flow. Furthermore, the abandoned road adjacent to the shopping center which was previously used as a community dump, was cleared and leveled creating additional parking to improving the property as well as the community.

In August 2017 MarketSpace Capital sold the property for $805,000 generating an IRR of 54% for investors.



Property Category: Retail
IRR: 54%
Park on Eldridge Apartments
Strategically located near the West Park Tollway, and Eldridge, the Park on Eldridge Apartments offers tenants a prime location in Northwest Houston, combined with a quiet, peaceful area covered with beautiful scenery and surrounded by public parks and recreation. MarketSpace Capital acquired this well located property, consisting of 61,624 square feet, in November 2012 for $3.5 million, with an equity basis of $1.2 million and debt of $2.3 million.

After a series of value-add exterior and interior renovations, the property was quickly able to realize significant rent increases, stabilized occupancy, decreased turnover rates, and reduced expenses within the first 12 months of ownership. Over the course of 5 years, the property saw rents grow by 5% on an annual basis and an increase of well over $100 per unit.

MarketSpace Capital ultimately sold the property in July of 2017 for $4.45 million, thus generating $2.15 million in equity and an IRR of 19% for investors.


Property Category: Multifamily
IRR: 19%

Get to know Our Team

We are primarily focused on investing in apartment buildings, retail centers, and office buildings in high-quality markets nationwide while providing best in class services to its investors, tenants, and employees.

INCOME IS NOT

WEALTH

GO FORWARD AND CONQUER REAL ESTATE INVESTING

Press Inquiries and Resources: info@marketspacecapital.com

About Us

MarketSpace Capital, LLC is a Houston, Texas-based private equity real estate development firm focused on ground up developments and value-add investments throughout the United States.

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Headquarters

9100 Southwest Freeway, Suite 201
Houston, Texas 77074

Satellite Office

8215 Westchester, Suite 300
Dallas, Texas 75225