ABOUT US

Background

Boston-based Albany Road was established in July 2012 with the intent of delivering attractive risk-adjusted and tax efficient returns to our high net worth and family office investors. Following an initial focus on opportunities in the Northeast, the firm expanded its reach into the Southeast and Southwest with the opening of offices in Nashville and Dallas, respectively, and subsequent acquisitions in Tennessee, Georgia, North Carolina, South Carolina, Texas, Florida, and Arizona.

Albany Road’s four founding partners bring more than 120 years of real estate, investment banking, and venture capital experience to our platform. The diverse, yet complementary, skill sets of the partners provide us with a unique perspective and discipline that is utilized to evaluate a wide range of investment opportunities.

Since our inception, the partners (and employees) of Albany Road have invested a minimum of 10% of the equity required in any given investment or fund, culminating in over $60 million in commitments to date.

Strategy

Albany Road generally pursues investment opportunities priced in the $20 – $50 million range. This is inefficient and fertile space in which to operate, as the deal size is typically too small for major institutions to focus on, and too large for the typical private operator to tackle. We feel that the favorable risk-return metrics found in this pricing range are notable, particularly for a manager that has discretionary equity at our disposal.

Beyond deal sizing, our focus on acquiring commercial real estate assets includes the following:

  • Middle -market assets in non-core (secondary) market locations that have not experienced the pricing run-up that has occurred in Gateway markets like New York, San Francisco, and Los Angeles.
  • Take advantage of the local presence, experience, and relationships that our senior professionals have developed over their careers in the markets in which we operate.
  • Consistent cash flow component (ideally coupled with some sort of repositioning story), whereby the majority of aggregate returns (+/- 70%) are generated via current cash-on-cash yields, as opposed to an assumed run -up in exit pricing.
  • Ability to finance investments with 65% – 70% in loan proceeds to take full advantage of today’s credit markets, which remain extremely favorable.
  • Acquire properties at a favorable cost basis and discount to replacement cost.

We pursue a variety of product types to accomplish our goals, including but not limited to the industrial (warehouse, distribution, flex, and R&D) and office (medical, suburban, and urban) sectors.  While preferring core-plus, cash flowing real estate, we will consider acquiring truer value-add product (vacancy, lease-up risk, etc.) if the opportunity is balanced with appropriate projected returns and quantifiable risks.

Initially, Albany Road acquired real estate using a syndication structure, capitalizing each investment (debt and equity) on a one-off basis.  We pivoted to a fund model beginning in 2015, as described further below:

Fund I (Albany Road Storage Fund LLC)

  • Final Closing / Size: February 2015 / $25MM
  • Focus: A fully discretionary self-storage fund, aimed at acquiring smaller, one-off self-storage investments in the Northeast, prior to selling an aggregated larger portfolio at a premium.
  • Fund Status: Closed and realized.

Fund II (Albany Road Real Estate Fund II LLC)

  • Final Closing / Size: April 2018 / $175MM
  • Focus: A fully discretionary industrial and office fund, diversified by geography, product type, and tenant profile across the Northeast, Southeast, and Southwest.
  • Fund Status: Closed and active. The fund is fully deployed and consists of 17 investments, four of which provided co-invest opportunities for our investors.

 Fund III (Albany Road Real Estate Fund III LLC)

  • Final Closing / Size: January 2021 / $245MM
  • Focus: A fully discretionary industrial and office fund, diversified by geography, product type, and tenant profile across the Northeast, Southeast, and Southwest.
  • Fund Status: Closed and active. The fund is 18% deployed and currently consists of four investments.