Rammrath Realty Ventures History of Achievements

Bought 10 acres of deed restricted industrial park land in 1995. Within two years we sold 5.5 acres, recouping all our original investment and then some. The balance was sold off one year later. We more than tripled our original investment.

Purchased a small retail strip center in northwest Houston. The property was only 60% occupied. We leased the remaining space, cleaned up a collection problem, re-negotiated the lease of the anchor tenant (to our favor of course), sold the center, and doubled our money within two years of purchase.

We used the proceeds of the above sale to acquire TWO additional properties. One was a run down and vacant multi-tenant warehouse near the Medical Center. After an extensive remodel and facelift we leased the entire 16,000 sf in only seven (7) months. The property was sold in September 1999.

The second property was a 65% occupied retail center near Hobby Airport. The vacancy was filled and annual cash flow for the 13,500sf center increased by $20,000. We were able to sell the center for a nice profit less than one year after purchase.

In 1996 we purchased a retail center in Pasadena from a local bank. In less than one year the center was fully leased (it started at 55%). The revised cash flow represented a 40% annual return on the equity invested. Based on this excellent cash flow, a local investor offered us a price that was over twice what we paid so the property was sold in 2005. The partners made 8X their original investment but still chose to exchange into a larger deal.

In 1997 we acquired a 24,000 sf retail center near Spring Valley. The area was an older transitional neighborhood so we were careful to buy it right in order to plan for the future. At only 62% occupancy we still made 10% on our initial investment. Once we reached 88%, the property was put on the market and subsequently sold for its asking price.

The proceeds of the Spring Valley retail center sale were rolled tax-free into the purchase of the Frey James Center on the Gulf Freeway directly across from Almeda Mall. Because of its excellent freeway location and exposure, the Center has remained full and cash on cash returns exceeded expectations. So much so that in early 2006 a local investor offered a $1ml premium, an offer we couldn’t refuse.

A single tenant 10,500sf office warehouse building was purchased at a tax sale in late 2000 for only $75,000. We remodeled the facility and is now conservatively worth $350,000.

In order to diversify the portfolio we began researching the Dallas market. In 2001, we closed on a two tenant industrial building located in the desirable Telecom corridor. The rents were very low so the building was remodeled, re-tenanted, and the value increased by 50%. It was sold in 2005.

In 2002 we identified another “turn-around” play in the growing and vibrant Champions/Spring/Louetta area of north Houston. The Klein Church Plaza was a classic example of mis-management. In less than three months we increased the occupancy from 60% to 90% and completed a major remodeling of the façade. Now at full occupancy, the value of the 24,000sf retail center has increased by 120%. It was sold in September 2006.

In early 2004 a 1.46 acre site was purchased in Lumberton, Texas, a small town northwest of Beaumont that is seeing phenomenal growth. The site is located just south of a brand new Super Wal-Mart along the primary north/south artery of State Highway 69/287. A new retail center will be developed on the site. Worst case we sell the land since our basis is less than $2/sf.

With proceeds of the sale of the Pasadena center we purchased the High Meadow Center, a 54,000sf grocery anchored center located at 3900 Aldine Mail Route in north Houston. An extensive renovation has been completed as well as the construction of a 3,600sf pad building. The tired old property was only 50% occupied at purchase and is currently 95% and providing a substantial annual cash flow to the partners.

In spring of 2005 we partnered with one of our investors in order to acquire a 40,000sf crane served manufacturing building for his company. A sale leaseback was structured such to provide a 30% annual cash on cash return during the five year hold. His business has grown more than first anticipated so we sold this building and constructed a brand new 85,000 square foot facility in 2009.

In 2006 we completed our first ground-up development in Temple, Texas. A closed down 14,000sf movie theater was converted to an ACE Hardware, an additional 12,000sf of new retail space was built, and a brand new free standing restaurant for Domino’s Pizza was also constructed. Once we reached 100% occupancy, the project was sold to a California investor for a healthy profit.

We used proceeds from the Klein Church Plaza sale to purchase a 173,500 square foot power center in the burgeoning Rio Grande Valley of South Texas. As with most prior purchases, Resaca Village was a tired old center in need of a new image. We are happy to report the “new” Resaca Village is the talk of Brownsville and occupancy has reached 97.3%. The original Klein Church partners have seen their investment grow 10 fold.

In 2007 we acquired a totally vacant 25,000 square foot retail center located at a prominent and highly visible southwest Houston intersection. It will be demolished in order to develop a beautiful brand new center. Worst case, we sell the land for almost double it’s purchase price. Once again we made our profit on the day we bought it.

In late 2008 we purchased a two building project located along the primary retail corridor of Texas City (FM 1417 – Palmer Hwy). Building One was spun off to Aaron Rent’s as they prefer to own the building when it is one of their better performing stores. Building Two is a small strip retail building that was initially occupied by Hollywood Video and a local doctor. Good news (May 2009) Hollywood signs a new 5-year lease; Bad news (February 2010) Hollywood’s parent, Movie Gallery Inc., files for Chapter 7 liquidation; Better news (late 2010) we finalized the last of 3 new leases with Schlotzsky’s Deli, H&R Block, and Verizon. Now we own a totally remodeled and improved building, have 3 solid long term leases with no one tenant controlling more than 1/3 of building, and control a property that also includes a strong owner/occupant (Aaron’s).