Havenridge Property Group
$41M AUM · 9 assets · 1.4M sq ft leased
Havenridge owns nine assets across two secondary metros: four flex-industrial, three suburban office, one retail strip, and one self-storage facility. Blended occupancy is 87%, but the two office buildings carry the entire vacancy. $14.6M of debt matures inside eighteen months at rates 260 basis points above the maturing coupon, and the partnership has never modeled what that does to distributions.
The question on the table
Which assets do we refinance, which do we recapitalize, and which do we sell before the maturity wall hits?
Company file
- Assets under management
- $41.2M
- Properties
- 9
- Occupancy
- 87%
- Portfolio NOI
- $3.18M
- Debt outstanding
- $24.9M
- Maturing < 18 mo
- $14.6M
What the system found
$3.18M → $3.71M
Portfolio NOI after the lease and expense actions
1.19x → 1.42x
Blended DSCR at the refinanced coupon
$2.9M
Trapped equity released by selling the two weakest assets
18 → 0
Months of unmodeled maturity exposure
Asset-level performance, the refinance decision, lease exposure, and the recommendation with the numbers attached.
BK-OS · Run All Layers
Sell two, refinance five, recapitalize two
Recommendation: sell Northgate Office and Pierce Commons, refinance the four flex-industrial assets and self-storage into a single facility, and bring an equity partner into the remaining two office assets rather than personally guaranteeing them.
The flex-industrial assets are carrying the portfolio: 96% occupied, 4.1% average annual rent growth, and a tenant base with no single exposure above 11% of NOI. They finance at 1.61x DSCR standalone and should not be pledged against office vacancy.
Northgate is the problem. It is 54% occupied, its two largest leases expire within nine months, and its 2019 basis assumed a return-to-office recovery that has not arrived in this submarket. Every month held costs $31k of carry and the exit price falls with each expiring lease.
| Asset | Occupancy | NOI | Debt | DSCR | Call |
|---|---|---|---|---|---|
| Grantley Flex I–IV | 96% | $1.42M | $8.9M | 1.61x | Refinance |
| Vault 90 Self-Storage | 91% | $0.61M | $3.4M | 1.54x | Refinance |
| Mercer Retail Strip | 88% | $0.44M | $2.6M | 1.31x | Refinance |
| Halstead Office | 79% | $0.38M | $3.1M | 1.08x | Recapitalize |
| Foundry Row Office | 71% | $0.26M | $2.8M | 0.94x | Recapitalize |
| Northgate Office | 54% | $0.09M | $2.7M | 0.41x | Sell |
| Pierce Commons | 62% | -$0.02M | $1.4M | — | Sell |
Comprehensive Financial Analysis
Where the NOI actually leaks
| Line | Portfolio | Market | Gap |
|---|---|---|---|
| Operating expense ratio | 41.2% | 35.0% | +6.2 pts |
| Rent vs. market (flex) | $8.90/sf | $10.40/sf | -$1.50/sf |
| Rent vs. market (office) | $21.10/sf | $19.60/sf | +$1.50/sf |
| Tenant improvement per sf | $44 | $31 | +$13 |
| Leasing commission load | 6.1% | 4.5% | +1.6 pts |
| CAM recovery rate | 78% | 94% | -16 pts |
| Insurance per sf | $1.42 | $0.96 | +$0.46 |
- HighFlex-industrial rents are $1.50/sf below market on 640k sq ft
Six leases roll in the next 24 months. Marking those to market alone adds roughly $410k of annual NOI, which at a 7.0% cap is $5.9M of value for zero capital.
- HighCAM recovery is 16 points below market
Three legacy leases use a gross structure with no expense escalation. Every insurance and tax increase since 2021 has been absorbed by the partnership, not the tenants.
- MediumInsurance is being bid per-asset, not per-portfolio
A single master policy across nine assets was quoted 27% below the aggregate of the current standalone placements.
Cash Flow Command
Distributions under four refinance scenarios
Do nothing, refi all at market
Sell the two office laggards
+ mark flex rents to market
+ portfolio insurance & CAM fix
Month 0–2
Broker Northgate and Pierce
List both before the next lease expirations reprice the exit.
Month 2–5
Term sheet the five-asset facility
Single cross-collateralized facility on the performing assets only.
Month 4–9
Renegotiate the three gross leases
Move to modified-gross with a 2019 expense base and 3% escalators.
Month 9–14
Equity partner into the office pair
Sell 45% at a basis reset instead of personally guaranteeing the gap.
Document Intelligence
61 leases read, the six that matter surfaced
- HighCo-tenancy clause at Mercer Retail
If the anchor vacates, four inline tenants may reduce rent to 4% of gross sales. Anchor lease expires in 22 months.
- HighTwo leases lack estoppel cooperation language
A lender cannot close a refinance without estoppels. Both tenants can stall indefinitely at no cost to themselves.
- MediumBelow-market renewal option on 84k sq ft
Fixed at $8.25/sf against a $10.40 market. Exercisable in 14 months.
- LowMissing SNDA on three flex leases
Routine to cure now, expensive to cure under a closing deadline.
Competitive Position Radar
What the competing landlords are doing
| Owner | Signal | So what |
|---|---|---|
| Corbin Industrial | Delivered 180k sf spec flex | Expect 6–9 months of free-rent concessions in flex |
| Ashvale REIT | Converting an office asset to medical | Validates the conversion path for Foundry Row |
| Pinnacle Storage | Two new facilities within 3 miles | Vault 90 pricing power caps out this cycle |
| Local family office | Buying distressed suburban office at 62% of basis | This is your realistic Northgate buyer — price accordingly |
Successor Simulator
Two partners, twelve years apart
The senior partner is 67 and wants liquidity and predictable income. The junior partner is 55 and wants to redeploy every dollar into flex-industrial. The operating agreement has no buy-sell valuation mechanism and no funded insurance behind it.
Modeled outcome: a staged redemption funded by the two asset sales and the refinance proceeds, retiring 60% of the senior interest over 36 months at an agreed 6.75% cap rate, with the balance converted to a preferred position paying 7% with no management rights.
Written buy-sell with a stated valuation method
Cap-rate based, refreshed annually
Both partners · 60 days
Key-person insurance sized to the redemption
Currently zero coverage
Junior partner · 90 days
Third-party appraisal on all nine assets
Asset manager · 120 days
Preferred-position term sheet drafted
Counsel · 150 days
What would this look like for your business?
Havenridge Property Group is illustrative. The tools are not. Point them at your own numbers and you will have the first version of this file inside an afternoon.