Repositioning Agricultural Land for Sustainable Energy

Brief: A360 Capital has been providing advisory services to multiple ag-land clients for several years, specializing in real estate portfolio management to optimize their land assets.

Aim: To stay ahead of the curve by making informed decisions about repositioning farm land, especially in response to persistent water shortages and fluctuating commodity prices.

Result: Our team has maintained a vigilant pulse on market changes anticipated in the agriculture industry and their potential impact on our clients’ agricultural land portfolios and future income. Armed with our in-depth market knowledge and awareness of the latest proposals, we identified that the Westland Water District was initiating a public-private partnership to reposition several hundred thousand acres in the most water-restricted areas. We approached multiple solar companies seeking solutions for the anticipated fallowed land. Through rigorous due diligence, our team secured 35-year base term ground lease contracts with the most reliable and financially sound solar partners, ensuring safe and lucrative annual lease distributions for our clients. We have successfully advised on the transition of over 8,000 acres of agricultural land in Central Valley, CA, to sustainable solar energy use.

Maximizing Retail Centers Performance

Brief: Under A360 Capital’s portfolio management, we monitor and advise on an array of retail centers, ranging from regional community centers to neighborhood strip centers across Southern and Central California.

Aim: To ensure all centers are performing at their peak. Advisory services include sale, leasing, lease evaluation, lease negotiations, lease renewals, and monitoring any zoning variances that may affect the value and use of the underlying land.

Result: We have successfully demonstrated an increase in the value of the centers by leasing to quality tenants and bringing rents of legacy tenants to market value. For every $5,000 annual increase in rent, the property value increases by $100,000 at a 5% capitalization rate. We are also currently working on converting older strip centers into express car washes. At A360 Capital, we leverage our extensive network of consultants to ensure the highest and best potential is realized for all real estate assets under our portfolio management.

40 Units Multi-Family Development Site in Los Angeles

Brief: A360 Capital (A360) worked with a family office client looking to add to contiguous lots in West Los Angeles.

Aim: The client’s objective was to assemble the lots and sell them as land assemblage, with the goal of achieving a higher-than-average return on investment.

Los Angeles Hotel Portfolio Repositioning

Brief: We worked with an experienced owner-operator hotelier with over 200 rooms in
their portfolio, who needed a strategic plan to retire.

Aim: To make an informed decision on whether to sell or lease hotel assets in order to
secure superior passive income post-retirement.

Result: We structured a long-term management contract with a third party, who benefited with a significant increase in occupancy rates and a reduction in operating expenses. Not only did our client retain ownership of their assets, they also saw a significant increase in property valuation. Building on this success, our team advised our client to use the equity gained in hotel assets to invest in triple-net properties, which offer zero landlord responsibility. As a result, our client now has a diversified portfolio of income-generating properties, including “coupon clipper” assets.

Southern California Multi-Family to Triple Net Portfolio

Brief: We had the opportunity to work with a family office client who owned several multi-family assets in the Greater Los Angeles Region. The family office has owned the assets for over two decades and wanted to retire from the management side of the business. Our team identified an international buyer who acquired the portfolio at a low 3% cap rate.

Aim: Reposition multi-family assets to triple net properties. Increase net income with minimal landlord responsibilities.

Result: The exchange resulted in an over 40% increase in return on investment by capitalizing on equity gain in multi-family assets. Each property in this exchange was an Absolute Triple Net lease with zero landlord responsibilities, with an average initial lease term of 16 years.

Food Packaging Company Exit Journey

Brief: At A360 Capital, we understand the importance of finding the strategic buyer when it comes to selling a privately owned business. Recently, we had the opportunity to work with a privately owned family business in food packaging with over 40 years of experience in the industry. The client was looking to sell the business and retire.

Aim: The objective was to find the right buyer who would maintain the brand’s legacy, quality, and company ethos.

Result: We were able to bring three offers to the table and increase the business value by over double of our clients’ original objective.

Higher Returns on a 1,400 Acre Farm Deal

Brief: We worked with a group of astute real estate investors who own real estate assets primarily in multi-family and retail properties in the Western U.S.

Aim: Our objective at A360 Capital was to diversify our clients’ real estate portfolios with farmland investments, a historically low-volatile asset class that delivers superior passive income.

Results: We successfully acquired a significant farmland portfolio for our group, consisting of over 1,400 acres of young almond farms with an average remaining nut bearing tree lifespan of 23 years in California’s central valley. Our clients lacked farm management experience, and we structured a successful partnership with a leading local tree nut grower through a long-term management agreement. This resulted in a yearly average return on investment of 14%, significantly higher compared to the typical 5-6% returns from traditional multi-family and retail investments.