Essex River Ventures, Inc. ("ERV" or the "Company") was formed in 2003 to take advantage of dynamic investment opportunities where the flow of capital between the real estate and capital markets can be constricted. Often, the most rewarding investments exist outside the mainstream and are discovered in the off market currents nearby. Piloted with skilled guidance and a clear vision, the Company's objective is to make value investments, manage proactively and harvest superior investment yields.
ERV has made 13 strategic acquisitions worth $160 million, employing an investment strategy focused on value, income and growth.
ERV assembled a New England based 1.7 million SF real estate portfolio diversified by product type, geography and risk. With assets in Massachusetts, Rhode Island and New Hampshire, ERV has built a strong asset base and assembled an effective management team to execute asset strategy plans for each property. In turn, the Company has unlocked value through product repositioning, land entitlements and leasing.
Buoyant capital markets and improving real estate fundamentals enabled ERV to harvest substantial profits in 2006 via targeted dispositions that were aligned with the goals of each asset plan. By the end of the 1st Quarter 2007 the Company sold five assets that were acquired for approximately $67 million in 2003 and 2004. The aggregate sales price of these assets was over $89 million.
The initial equity investment for all five deals was $24 million. Based on booked closings and executed contracts, the overall weighted average equity IRR is projected to be over 32%.
ERV's remaining portfolio is worth $110 million. The assets are diversified by geography: Boston (60%) and Providence (40%) and product type: urban office, inner suburban mixed-use and suburban office/R&D. With substantial added value already created through leasing, entitlements and upgrades these assets are poised to benefit from continuing market strength, low interest rates and an improving economy.
The objective for 2007 will be to increase ERV's diversified asset base and to advance its development projects. During the 3rd Quarter the Company will embark on over $90 million of new construction in two mixed-use waterfront projects in greater Providence and will move forward on entitlement and redevelopment plans for two Boston area investments.
This core activity will be strongly complemented by continued discipline in an active acquisition program with a goal of increasing the core operating portfolio to $250 million by the end of 2007 while harvesting yield on mature investments.
ERV skillfully navigates challenges and opportunities in an ever changing real estate investment market while offering a position of confidence and security to the investor.
"ERV Navigates Real Estate"
