How Our Deals Are Structured

Vanguard works with a small universe of private equity investors in the majority of our acquisitions. Each investment block receives a preferred return, which varies according to deal parameters and is set at the time of offering; historically, the preferred return has generally been between 6%-8% annually. In addition, each block receives a set percentage ownership in the applicable deal. The size of the investment blocks are generally either $50,000 or $100,000, depending on the overall size of the deal. The preferred returns are dependent on available cash flows, but are cumulative. Vanguard receives no distributions from a property unless all preferred returns to the investors are current.

Vanguard’s principals make personal equity investments in each acquisition, and generally represent the largest investors in each deal. While we recognize the need to incorporate outside equity in our acquisitions, we do not subscribe to the “other people’s money” philosophy of doing business. As significant financial investors ourselves, we feel that our philosophy and approach are very investor-friendly, and our overriding goal is to be considered as good stewards of our investors’ resources. Many of our investors have been involved with us throughout our existence, and we greatly value their trust in us.
If you would like to inquire about future investment opportunities, please feel free to contact us via e-mail at tim@vanguardassociates.net.

Acquisition Criteria

Vanguard built a reputation throughout the late 1990’s and early 2000’s as the largest purchaser of former Wal-Mart buildings, with nearly 30 such acquisitions spread over several states, but most in Florida and Georgia. These properties were subdivided and re-tenanted with a number of National/Regional retailers such as:

Tractor Supply Company
Save-A-Lot
Hobby Lobby
Big Lots
Dollar Tree
Dollar General
Family Dollar
Bealls/Bealls Outlet
Fred’s
CitiTrends

Continuing with our value-added philosophy, Vanguard is aggressively seeking acquisitions which offer the potential for strong cash flows and value enhancement resulting from a strong leasing effort and effective management. Specific criteria that we seek in acquisitions include:

-Properties that are well-located within their markets, with good visibility and access
-Significant vacancy/re-tenanting opportunity
-Below-market rental rate structure with existing tenant base
-Low cost-per-square-foot relative to market
-Project size of at least 50,000 square feet