Coastal American Corporation (Coastal)
When SugarOak took over management of Coastal’s portfolio in 1997, it consisted of two hotels, two trailer parks, a trailer rental business and vacant industrial land. There were over 100 employees on Coastal’s payroll.
Objectives & Results
SugarOak’s objectives were to transition the business from employee intensive operating businesses to investment commercial real estate. In so doing, the goal was to increase distributions to the shareholders and add value to the portfolio. Coastal had a low tax basis in their properties and therefore any sale required a reinvestment of sale proceeds using Section 1031 Exchanges.
SugarOak accomplished its objectives by transitioning Coastal’s portfolio away from its non-performing properties through a series of purchases, renovations, and exchanges. Currently Coastal’s portfolio consists of 190,000 SF of office, 230,000 SF of retail, and 362 multi-family units. Coastal does not have any employees. Under SugarOak stewardship, the Coastal portfolio has experienced an average annual return of 13.6%.
1997 - Present