The Intersection of
Capital, Value & Opportunity
in Commercial Real Estate
Dealpoint Merrill is a subsidiary of The Merrill Group of Companies
The Merrill Group of Companies (Los Angeles and Las Vegas offices) is a privately held real estate development and property management firm which has been in business since 1985. The firm currently manages over two million square feet in office and retail assets throughout the nation. The firm’s CEO, David Frank, Esq. is a nationally recognized court appointed receiver for over 73 lending/servicing institutions. The subsidiary’s executives of DealPoint Merrill have acquired over $2 billion in assets and have attracted over $1 billion in equity for commercial real estate investments.
Transforming Assets into Success Stories
The evolving Commercial Real Estate marketplace offers an incredible growth investment opportunity as distressed assets move through the cycle of default borrowers to bank portfolios to REO sales, ultimately at a steep discount.
Over one trillion in loans will mature in the next few years with little capacity to refinance. Quality assets will be acquired below replacement costs or on a value add basis where the risk reward leans heavily towards the buyers. There is literally no end in sight to the depth of opportunities.
Very few of these opportunities are simply out there for the taking, the best of them are reserved for firms with the experience and insight to source, acquire, and successfully manage them.
DealPoint Merrill’s Strategic Partnerships
DealPoint Merrill’s Strategic Partnerships offer a dynamic form of Joint Venture in commercial real estate. The firm’s Strategic Partnership mandate is predicated on the a “best practices” blueprint to transform assets of distressed sellers into stabilized success stories, creating significant cash flow and a premium value in the process. The firm’s executives offer the national expertise in several asset classes needed to create growth opportunities of a type and scale attractive to private equity funds as well as institutional investors.
Co-Invest – Operating Platform
The firm’s primary objective in today’s market is to position itself as a reliable and consistent, co-invest, operating platform for Private Equity and Institutional Investors. DealPoint Merrill sources and manages opportunistic deal flow specifically aligned with the acquisition, management, yield, and exit objectives of our Strategic Capital Partners. The firm creates value by transforming acquired assets into successful, high yield holdings and dispositions. Our minimum targeted annualized IRR per asset is 20% on equity on a programmatic platform featuring high reward, low risk assets.
Executive & Management Team
DealPoint Merrill executives collectively, have a proven and deep track record, owing in large part to consistent, yet market sensitive investment strategies, which that they have successfully applied to over 6 million square feet, in excess of 100 commercial investments and $2 billion in acquisitions, including retail, multi-family, student housing, industrial, office, self storage and all types of development. The firm’s team of professionals include elite asset and property managers whose proven insight has navigated them through a variety of economic cycles, where they have consistently outperformed their peers. The firm’s executives collaborate on all elements of the ownership of each asset in the portfolio, including: sourcing, underwriting, due diligence, leasing, operations, asset/property management, investor relations and accounting, asset and tenant re-positioning, development and exit strategy.
DealPoint Merrill’s leadership team is strongly motivated by the desire to leave the communities in which they do business better places than they found them.
The firm’s elite professional relationships help source class A & B office, retail, student housing, self storage and multi-family assets in proprietary or advantaged situations. DealPoint Merrill specializes in creating value through repositioning assets acquired as non-performing notes, buyouts, distressed deals/turnarounds, selective portfolio investments and joint ventures in select stable markets, primarily in the Southwest, Texas, Georgia/Florida and New York/Washington DC regions.
Asset Management Experience
Asset Management Experience – our understanding of consumer and business demands and local demographics is essential to effectively reposition real estate to align with consumer behavior. Long-term value is created by selecting the optimal tenant mix and completing the appropriate capital expenditures specific to a given market and property. Our experience in multiple product types and markets enables us to craft the most efficient business plan for each product type.
Discretionary Fund & Asset Management Platforms
DealPoint Merrill is in the final stages of negotiations to create an acquisitions and development platform for independent student housing, reatil and self storage platforms with a seasoned commercial real estate oriented national hedge fund who currently manages a significant discretionary fund.
Investor Relations Platform
DealPoint Merrill’s Opportunity-Specific Platforms (OSP) work in conjunction with each Investment partner through transparent agreements allowing each participant to understand clearly the on-going management process necessary to maximize growth and shareholder value prior to an appropriate and timely exit. All investments are managed with the most stringent accounting, legal, risk management, compliance and best practices approach by Landwin Merrill.
Non-performing Bank Notes, a specialty
DealPoint Merrill executives are specialists in the arena of sourcing, acquiring, negotiating, and converting Non-performing Notes (NPN) into re-saleable fee simple assets at enormous profits. The firm has valuable skill sets (legal, title, receivership, court and bankruptcy experience) as well as solid access to notes through their elite, long-term relationships. Note conversions have the potential to deliver 20%-40% + net, annualized yield, after re-sale, as stabilized, fee simple assets and after the successful completion of smartly executed value add strategies leading to growth of income and enhanced market value.
Specific Asset Strategies
A specific strategy based on geography, tenant relationships, asset size and market dynamics has been established by DealPoint Merrill (subject to customization with a Strategic Capital Partner), narrowing the firm’s focus on markets that have measurable supply and demand characteristics as well as strong growth indicators.
The firm leverages its proprietary data base of long term relationships with lending institutions, elite intermediaries and principals to acquire performing and non-performing notes and real estate in key markets that meet the firm’s requirements for stability and growth.
Tenant Relationships –in retail, our executive’s longstanding relationships with anchor and national tenants enables us to manage tenants in repositioning situations, driving the overall property’s occupancy and rent growth.
The executive team is not only broadly experienced but has multiple, proven histories of effectively executing investment strategies in a variety of asset classes and markets.
- Direct – Principal to Principal
- Lenders – Money Service Banks – Loss Share Agreements
- Burning Off/Portfolio Sales/Recapitalizations/REO
- Note Sale Advisors
- Real Estate Brokers
Property Types – (Fee Simple and Notes)
- Student Housing
- Self Storage
Primary and secondary markets (with conditions) in defined markets
- Special Seller Circumstances
- Credit Enhancement
- CapEx, Re-branding, Re-tenanting
- Value Add and Repositioning
- Negotiated DPO
- Target annualized IRR range, upon re-sale – 20% -30%
- Hold Period – 1 – 3 years
- Restructuring and disposition