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September 2016

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Stockdale targets parking structures with new joint venture

Daniel Michaels is the Managing Director of Stockdale Capital Partners

LOS ANGELES-Stockdale Capital Partners formed a joint venture with the Grosvenor Group and As parking management, car park operator, to acquire car parks in the South-West. The joint venture will focus on revenue-generating parking garages in high-traffic submarkets as well as surface parking lots in markets where supply is limited.

We really tried to focus on niche strategies that were being overlooked and which we felt had more recession resistant demand. We focused on three areas: medical practice, age-restricted multifamily, and parking,” Daniel Michaels, managing director of Stockdale Capital Partners, tells GlobeSt.com. “We believe all three will outperform given where we are in the cycle today. Parking, in particular, is highly neglected, under brokerage and not owned by institutions. We believed there was a huge opportunity to find yield in this niche subset.

For the partnership, Stockdale partnered with Ace for their incredible industry knowledge. “Ace is the largest private parking company in the country, and there are really only two or three others that have the breadth and depth that they have,” Michaels says. “They have been around for several generations and we have a good working relationship with them. As we think about the possibility of buying parking lots, it’s obvious that a big part of that is understanding the parking operations themselves. We partnered with Ace to do this, and we think they have incredible knowledge. Grosvenor is a UK based family office business looking to gain exposure outside of the UK.

The joint venture will focus on the Southwest region, and Michaels says the target markets are quite diverse, from Northern California to Southern California to Arizona, Las Vegas and Houston. He estimates they will hold the assets for five to seven years, but each property’s business plan will vary. “Every asset is different, but some we can collect and create a wallet and some we can license for development,” he says. The joint venture plans to invest $100 million in these assets.

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