ACQUISITIONS

Headwater Capital Management and its principals have acquired a number of properties since the formation of their first Fund, AM&P Capital Partners, in January 2003. Some of the acquisitions are:

One Portland Square, Portland, Maine - Acquisition of a 76,834 square foot office condominium (the building is condominiumized by floor). The sale/lease-back is on a long term, triple net basis to one of Maine's largest law firms. The lease has 2% rent increases every year. The acquisition was originally financed with equity and variable rate, 7 year debt. In 2004, the property was refinanced with assumable, fixed rate, 10 year debt. A partial return of capital was made to investors at the time of refinancing. While leasing turn-over is not expected during the projected investment period, the property offers good re-leasing flexibility and the lease rates are below market.

Gibson Blvd., Harrisburg, Pennsylvania - Acquisition of 89% of a partnership owning a 115,590 square foot Harrisburg, Pennsylvania air conditioned warehouse building. The building is leased to the Commonwealth of Pennsylvania on a long term basis with annual rent increases. As 89% owner of the partnership, Headwater Capital Partners took control of the partnership. The acquisition was financed through an equity investment and a second mortgage note with the first mortgage note holder. The terms of the first mortgage were renegotiated at the same time the second mortgage was added. The two notes are assumable, fixed rate and have five year terms. The notes may be extended to ten year terms, under certain conditions, including if the lease is extended through 2014. While leasing turn-over is not expected during the projected investment period, the property offers good re-leasing flexibility because of its air conditioning and functional size within the South Central Pennsylvania Industrial Market.

Whitehead Rd., Baltimore, Maryland - The acquisition of a 86,168 square foot industrial facility. The property is leased on a long terrm, triple net basis to a private regional manufacturing company. The lease has 6% rental increases every 3 years.  The acquisition was financed with equity and assumable, fixed rate, 10 year debt. While leasing turn-over is not expected during the projected investment period, the property offers good re-leasing flexibility because it is two separate but adjacent buildings and the existing lease rate is below market.

Water St., Exeter, New Hampshire - The acquisition of a 12,939 square foot historic downtown bank branch building.  The building is anchored by Citizens Bank and has two other smaller government agency tenants. While leasing turn-over is not expected during the projected investment period, the property offers good re-leasing flexibility because of substantially below market rent for the bank branch, its functional size and off-street parking within the downtown Exeter office market. The property is being redeveloped with an affiliate (see Workforce Housing LLC in 'Affiliated Companies' tab) to add up to 37 rental residential units. Upon a successful completion of the multi-family development component within two years, it is anticipated that the equity investors will receive a substantial return of capital distribution while still benefiting from future distributions and appreciation of the property.

2001 Centre Ave., Reading, Pennsylvania - This 3 year old building is the Northeast distribution facility for Glidden Paint/ICI. The building totals 248,000 square feet, has 28" to 34" clear height and is crossed docked with 32 dock doors (8 receiving and 24 shipping.) This state of the art distribution facility sits on 16.4 acres adjacent to the Glidden manufacturing plant creating and ideal storage and shipping location for the company. The property is in a Keystone Opportunity Zone creating a property tax free status through 2013. The tenant is on a long term lease and has extension options thereafter.

25 Holly Dr., Newington,Connecticut - The acquisition  of a 60,480 square foot two story office building on 4.06 acres in Newington, Connecticut just off Rt 84.  The building is leased on a long term basis to United Technologies with a sublease to Computer Science Corporation. The building has two diesel generators as back up for power outages due to the power sensitivity of the tenant.

 

55 Hutcherson Drive, Gorham, Maine - The acquisition of an 117,500 square foot industrial facility on 18 acres. The property is leased on a triple net basis to Jotul North America, Inc., a multinational stove manufacturing company.  The lease is on a long term basis and has several renewal options.  The property, situated on the Gorham and Westbrook town lines, adjacent to Route 25, has excellent further development opportunity.  The building was built in 1974 with substantial renovations in 1993-94.  It is in excellent condition and is currently being used for office space, manufacturing and warehousing.

71 US Route 1 Scarborough, Maine - The acquisition of a one-story, 64,320 square foot, light-industrial facility on 6.6 acres.  The property is leased on a long term, triple net basis to Konica Minolta.  The property is well located on an established part of the Route 1 commercial corridor in Scarborough, one of the fastest growing communities in ther Greater Portland area.  The building was built in phases from 1975-1987 and is currently being used for film processing, offices and warehousing.