Our Portfolio

Our portfolio currently includes nine holdings which are owned by various partnerships and tenant-in-common groups. All of the properties are multi-family residential and all but one are in Texas; the exception is in Gulfport, Mississippi.

In the interest of transparency:

The Pain Report
In the history of our previous company, Schrogin/Baar LLC, we have sold two properties at a loss. We have also seen one of our investments in a real estate fund collapse, also a first in our history, but in that investment we showed minimal loss. One of our shopping centers, Beach Street, was at one point risk at of foreclosure, now alleviated by a refinance and has sold for an approximately 70% loss of equity. Magnolia Crossing ran in the red until recently; we changed its onsite manager and have radically improved its cashflow.

The recession played a role in some of these situations. The collapsed holdings referred to above were owned and managed by Sunwest Management Company, a national chain of senior living centers. Two years ago Sunwest imploded, a victim of the credit freeze, the recession and, frankly, of its managers’ greed and fraudulent actions. We anticipated that even a “best case” scenario would see us lose up to half of our funds, but ultimately we recovered almost 100% of our investment. Difficulties at the property in dire condition (Beach Street) have been heavily but not entirely influenced by the recession. Problems at at a small shopping center that we have sold at a 20% loss are recession related. Finally, problems at another property which has been sold several years ago were mainly attributable to a change in a local ordinance.

The Holding to Thriving Report
On the positive side we have sold many properties at a profit and reinvested the gain into new properties. The two profitable sales that we made through a deep recession are noteworthy. We have more recently purchased another small shopping center, a residential rehabilitation project, some small residential projects, and an office building.

At this point, our residential properties are for the most part thriving.

We now own multi- family complexes in thee Central/West Texas towns: Snyder, Andrews, and Lubbock, along with a complex in Gulfport, Mississippi. We have developed a presence in these more remote, tertiary markets, which the majority of real estate investors shy away from. We are benefiting from our long-time Texas real estate contacts and our ability to find local management in these locations. Then again, the current drop in the price of oil is affecting the towns in Texas in which we have invested. We have seen significant drops in occupancy in two of our Texas residential investments.

For the most part, and see our chart Keeping the Score, our investors have enjoyed  a return on their investment which has made us quite proud.