Snowball Developments

Our 2024 Fall Newsletter is live with the title "Captain Powell Lands the Plane?" Main highlights of this edition: 1) Central Banks Policy Convergence on Rate Cuts 2) Snowball sale of 325 Midland in Garfield NJ 3) Climate Change + Insurance Costs & Population Flows   4) Connecticut slowly gaining institutional investor attention Plus a recap of our hiring announcement of Scott Sambade as Head of Capital Markets, and links for becoming an investor + newsletter subscriber. #industrialrealestate #tristate #creinvesting #roundtrips #alwaysbelearning https://lnkd.in/esnZBhSS

Q3 industrial leasing data is starting to be distributed and we are going thru the numbers to pinpoint where we should focus our acquisition efforts. Interestingly, the tightest submarket in the whole state is Suburban Essex / Route 22, where we own an 80,000 SF asset and achieved a 66% leasing spread ($15.50 vs $9.30 psf) on a renewal with a 63,000 SF tenant. Why could we demand that spread - because the tenant's overall cost to relocate was prohibitive and local business owners want to be in that market.

A little Sunday comedy relief….but good reinforcement for our business plan of sourcing investments where macro and micro market forces provide substantial tailwind to the business plan!

Very proud to announce that the Snowball GP Investment Fund has completed its total equity raise of $10.0M USD. This fund enables a potential total portfolio value of $200M assuming 15% GP equity per deal. Within the fund, we have already acquired 2 quality urban infill industrial assets (featured below) in #Connecticut and #NewJersey deploying $1.6M of equity. Our acquisition pipeline has recently ballooned and we are motivated to close additional compelling acquisitions in the near future. Snowball Developments is always seeking like-minded equity partners (big and small) to join us on this journey. Our first underwriting component is ensuring a deeply discounted land basis and second is the feasibility of the mark-to-market opportunity. We are building typology agnostic and focused on generating truly superlative returns (+20% IRR) for investors over a 3-5 year holding period. We do not spray and pray like some of our peers but cannot fault them for being incentivized to do so. Instead, we are motivated by the promote earned by doing better market analysis and executing the business plan more efficiently than projected. Onwards and upwards. #creinvesting #entrepreneurialism #industrialrealestate

Very proud to announce that the Snowball GP Investment Fund has completed its total equity raise of $10.0M USD. This fund enables a potential total portfolio value of $200M assuming 15% GP equity per deal. Within the fund, we have already acquired 2 quality urban infill industrial assets (featured below) in #Connecticut and #NewJersey deploying $1.6M of equity. Our acquisition pipeline has recently ballooned and we are motivated to close additional compelling acquisitions in the near future. Snowball Developments is always seeking like-minded equity partners (big and small) to join us on this journey. Our first underwriting component is ensuring a deeply discounted land basis and second is the feasibility of the mark-to-market opportunity. We are building typology agnostic and focused on generating truly superlative returns (+20% IRR) for investors over a 3-5 year holding period. We do not spray and pray like some of our peers but cannot fault them for being incentivized to do so. Instead, we are motivated by the promote earned by doing better market analysis and executing the business plan more efficiently than projected. Onwards and upwards. #creinvesting #entrepreneurialism #industrialrealestate

Our Mid-Year 2024 report is live and available here: https://lnkd.in/eRX7KEWR Its been one amazing ride to date, and so much more to come. Onwards and upwards (except interest rates LOL).

Proud to announce this refinancing closing. We still have lots of work to maximize value on this asset, but in the meantime its nice to return material investor capital!

Our Spring Newsletter is published. A bit verbose but so much to cover! Link here: https://lnkd.in/er2npeiX

Proud to announce that with the recent closing in Totowa New Jersey, Snowball Developments has crossed the threshold of 100 separate investor accounts. Milestones are nice but the fact that with only a small team we can easily handle the investor relations component is a tribute to our dependence on technology platforms that minimize the administrative burden. There is no limit to the number of accredited investors we will take on, so if you are interested in participating in a future offering, reach out here or on our website at www.snowball-dev.com.

It is with great pleasure that we finally get to announce Snowball Developments' acquisition of 657 Union in Totowa New Jersey. This 52,500 SF light industrial asset is one of the most accessible assets in all of Passaic County with immediate access to and from the I-80 expressway with Union Boulevard linking to the Route 3/46 interchange a couple minutes south. The Property sits on a spacious 3.5 acre site with abundant parking capacity and flexible IOS zoning. We think it perfectly meets the needs of Meadowlands & Bergen County tenants migrating westward who require more space & more parking! For those in the NNJ industrial brokerage and investment sphere, everyone within will know that we were not the first buyer on the deal, but evidently we were the most persistent. I cannot thank enough all of the amazing clients I had back at CBRE in Montreal who showed me how to get the toughest deals across the line and our incredible deal team that went the extra mile over and over to meet the needs of our capital partners. Most importantly I want to thank the Goodman/Shulman family for maintaining their confidence that our acquisition path would lead to the outcome that we all desired. Aligning buyer and seller motivation is not the easiest to maintain over a 8 month long process and particularly during a rollercoaster period of evolving leasing and capital markets. We have entrusted the lease-up of the property to Team Resources, Inc. who have had a running head start. If not fully leased beforehand, we are planning to organize an open house to showcase our renovation plans and introduce the property management team of Lincoln Property Company taking over. In the meantime, we will be white-boxing the interior of the property and embarking on a landscaping overhaul and roof replacement program. We want to change the market's perception of this asset for now and into the future. This is the Snowball way and there is more to come.