San Diego, CA – April 15, 2026 – Thank you to everyone of our partners who was able to attend our in person Open House and Walking Tour with our team in St. Petersburg, Florida, in March. We look forward to hosting more open houses to spend time with all of our partners across the country.
To our current investors, our annual property business plan update videos have been posted to your portal. These videos provide an important update on the operations and business plans of each asset. Access your portal to view those updates.
This quarter, our team closed on the sale of Towne Square, a 302K SF retail shopping center in Roanoke, Virginia. The property, acquired in December 2019, was held for a total of 74 months and produced strong and consistent for investors.
Throughout the hold period, the Management Team successfully leveraged relationships with existing tenants to extend anchor leases and attract new national retailers to backfill several large spaces with high quality, credit tenants, and drive value at the property. At the time of sale, key long term leases at Towne Square included Petco (Expiration 2031), Homesense (2035), Chef’s Store (2038), Ross Dress for Less (2031), and Marshalls (2033).
2026 and Looking Ahead
We are confident in our investment thesis and remain disciplined and highly selective in our approach to targeted new acquisitions for the benefit of our capital and partners. As we have mentioned, we believe the market will present unique investment opportunities for those patient, flexible, and well capitalized. We intend to take advantage of this moment through two new strategic acquisitions:
Both acquisitions are conservatively underwritten and vigorously stress tested, and are projected to yield strong cash flow distributions beginning the first full quarter of ownership. The acquisitions are currently projected to close during the second quarter.
Operational Update
We are closely monitoring global events and macroeconomic news in order to evaluate the potential impact on commercial real estate and our portfolio. In this environment, we continue to focus on improving operations and conserving capital.
In the short term, supply demand imbalances continue to impact specific asset classes and markets throughout our portfolio. Our multifamily portfolio continues to face the lingering effects of new supply being absorbed in key markets such as Nashville, Austin, Phoenix, and Charlotte. However, we remain bullish on these markets in the long term as housing shortages and affordability will drive demand for apartment units.
As shared our retail portfolio continues to benefit from the lack of supply and strong demand for space which drives rental rates across much of our retail portfolio. Our retail portfolio signed over 200K SF of new and renewal leases during the first quarter this year. We have an LOI to sell one of our retail assets at a price that is projected to deliver outsized returns to investors.
The Florida Office portfolio continues to push rents and benefit from overall tight office submarkets. In 2025 alone, effective rents grew roughly 6.8% on average throughout the portfolio with an average occupancy rate of 93% overall across the portfolio, which we are very happy with.
As we look ahead, we remain focused on disciplined execution, operational excellence, and long-term value creation. Part of that commitment includes investing in technologies that help us work smarter and serve our investors more effectively. Over the past quarter, we have begun incorporating artificial intelligence into various aspects of our operations to improve efficiency, automate routine workflows, and enhance decision-making. While real estate remains a people-driven business, we believe thoughtful adoption of these tools will allow our team to dedicate more time to relationship building, investment analysis, and strategic growth initiatives.
Thank you for your continued trust and partnership. We look forward to sharing our progress and accomplishments in the quarters ahead.
About Equity Street Capital: Equity Street Capital (ESC) is a San Diego-based commercial investment firm renowned for its focus on achieving attractive risk-adjusted returns while maximizing long-term capital appreciation. Founded by real estate investors and entrepreneurs Than Merrill and Paul Esajian, Equity Street Capital is dedicated to providing transformative real estate investment opportunities to it’s investors.
