Boston-based Albany Road was established in July, 2012 to deliver attractive risk-adjusted and tax efficient returns for our high net worth and family office investors. Following an initial focus on opportunities in the Northeast, the firm expanded its reach into the Southeast, with the opening of a Nashville office and subsequent acquisitions in Tennessee, Georgia, and the Carolinas.
Albany Road’s four founding partners bring more than 100 years of real estate, investment banking, and venture capital experience to our platform. The diverse, yet complementary, skill sets of the principals provide us with a unique perspective and discipline that is utilized to evaluate a wide range of investment opportunities.
In 2016 Albany Road was named to Boston Business Journal’s List of Fastest-Growing Massachusetts Companies, ranking 4th. The “Fast 50” honors private businesses in Massachusetts with the fastest revenue growth for the previous three-year period, in this case 2012-2015.
Albany Road generally pursues investment opportunities priced in the $20,000,000-$50,000,000 range. This is ineﬃcient and fertile space in which to operate, as the deal size is typically too small for major institutions to focus on, and too large for the typical private operator to tackle. We feel that the favorable risk-return metrics found in this pricing range are notable.
Investments are capitalized with a blend of our own equity coupled with high net worth and family oﬃce equity, and/or institutional equity. A 65%-75% debt component is employed to take advantage of the historically low interest rate environment that exists today, and this approach allows us to generate the majority of our returns (+/- 75%) via immediate cash-on-cash yields, as opposed to back-loaded residual pricing.
Albany Road is focused on acquiring properties at a favorable basis, and at a discount to replacement cost, thus reducing the likelihood the property will have to compete (from a rental rate perspective) with any new development projects, when and if they were to be delivered.
We pursue a variety of product types to accomplish our goals, including but not limited to (1) urban, suburban, and medical oﬃce, (2) industrial/ﬂex/R&D, (3) retail, and (4) self-storage, and prefer real estate with a consistent cash ﬂow component, ideally coupled with a repositioning story. However, we will consider acquiring truer value-add product (vacancy, lease-up risk, etc.) if the opportunity is balanced with appropriate projected returns and quantifiable risks.
Asset Management Services
Albany Road’s Asset Management platform develops and executes individualized strategies to create and enhance the value of each asset through revenue generation, repositioning and capital improvements projects. With a current portfolio size approaching five million square feet, the Asset Services group strives to increase equity value for Albany Road’s investors, while effectively servicing a diverse tenant base across the Northeast and Southeast United States.