Investment
During 2006 the principals at CapRock Partners forecasted several macroeconomic trends that would lead to increasing office rents and lower vacancy rates throughout the Dallas and Chicago Metropolitan Area. In an effort to capitalize on those trends the principals at CapRock Partners, along with a privately held sponsor, purchased a seven building office portfolio in Chicago and Dallas. This portfolio totaled over 2,100,000 square feet of institutional quality office buildings.
Entities controlled by principals at CapRock Partners contributed approximately 80% of all required capital. At the beginning of the second quarter in 2008 the principals accurately predicted a deteriorating investment climate and entered negotiations to dispose of the assets.
As a result of accurately anticipating positive macroeconomic trends in 2006 and their constant monitoring of capital markets, the principals of CapRock Partners were able to successfully exit the partnership in September 2008, prior to the financial market collapse. Their attention to detail and successful negotiations generated an approximately 22% gross IRR in a rapidly deteriorating investment market.