World Class Capital Group

World Class Capital Group (World Class) is a privately owned investment firm that focuses on global real estate. The firm is based in Austin, Texas, with additional offices located in Dallas and New York City.[1] The company is owned by President & CEO Nate Paul.[2][3] In 2016, World Class was named the #24 top commercial property owner in America.[4] In August 2019 its offices were raided by the FBI.[5]

World Class Capital Group
TypePrivate
IndustryReal estate
Founded2007
HeadquartersAustin, Texas, United States
Area served
Texas
Colorado
Illinois
Iowa
Missouri
Key people
  • Nate Paul, founder, president & CEO
  • Sheena Paul, COO
Websitewccapitalgroup.com

World Class primarily invests in real estate equity, debt, and securities. Investments are made across the US and are made in various asset classes - including retail, office, industrial, self-storage and multifamily.[6] World Class Mortgage Capital originates senior mortgages, mezzanine loans and preferred equity on a fixed-rate and floating-rate basis.[7]

World Class currently owns more than 120 properties totaling over 10 million square feet across 16 states nationwide.[8]

Nate Paul, President and CEO of World Class, was listed in the 2016 edition of Forbes’ 30 under 30 in Finance for having built a $1 billion real estate portfolio across the United States by the age of 28.[9]

In late 2016, World Class expanded the firm’s debt strategy by hiring five former high-level Credit Suisse real estate bankers, marking a strategic expansion of the World Class real estate investment business.[10] At least two of those bankers left within six months of joining the firm.[11]

In July 2018, Nate Paul and his company acquired several properties in downtown Austin containing various live music venues and locked out the tenants despite current leases, effectively stealing all of these business’ equipment.[12]

Paul was previously embroiled in a wage theft scandal from 2014, where he was accused of stealing over $500,000 in tips from bar staff at Rio. Around that time, while renovating the former iconic Katz’s Deli, a steel support beam was severed causing the floor of the upstairs music venue to buckle. The owners of that venue were in talks with Paul to stay until the end of their 10-year lease option. Unable to pay for outside contractors to fix the damage, they settled out of court and vacated the premises early.[13] In early 2016, investor Michael Macs sued Nate Paul and World Class Capital accusing Paul of fraud, breach of contract and misrepresentation in connection with investments of nearly $15 million in several real estate ventures.[14]

History

In January 2011, World Class Capital Group purchased Teakwood Plaza shopping center in Austin, Texas.[15] In October of the same year, the company acquired three Austin properties which previously held Spaghetti Warehouse, Katz’s Deli, and La Zona Rosa, a live music venue.[16]

World Class purchased a prime lakefront property in downtown Austin in August 2012.[17] The same month, the company acquired a 12-property self-storage portfolio from Sovran Self Storage. The properties in Dallas and the Houston area operate under the Great Value Storage flag,[18] a wholly owned and operated subsidiary of World Class.[19][20] World Class acquired a portfolio of eight self storage facilities in Ohio in November 2012, which also operate under Great Value Storage.[21] Also in 2012, the company purchased shopping centers in Austin, Texas and Denver, Colorado.[22]

In 2013, World Class purchased Nellis Self Storage facility in Las Vegas,[23] and a five-property self-storage portfolio in Houston, Texas and Indianapolis, and re-branded under the Great Value Storage flag.[24] Later that month, it acquired the retail center Huron Plaza in Denver, Colorado.[25] In March 2013, World Class purchased a prime 1.3-acre property surrounding the Austonian skyscraper in the heart of downtown Austin.[26] That same month, it acquired Galleria Oaks, a shopping center in Austin.[27] The company purchased two commercial properties in June 2013 including North Oaks shopping center in Houston, Texas, and Andrita Media Center in Los Angeles.[28] World Class bought a student housing complex, State Flats, in San Marcos, Texas in December of that year.[29] In the same month, it purchased Culebra Crossing, a retail center in San Antonio, Texas.[30]

The company purchased the former Cypress Semiconductor campus in Round Rock, Texas in February 2014.[31][32][33] That same month, it acquired six self-storage properties in Houston and brought them under Great Value Storage.[34] In March 2014, World Class Capital acquired the KPMG Center in Dallas, Texas.[35][36] In September 2014, World Class Capital acquired a prime site in uptown Dallas.[37] The company expanded into Louisiana when it bought Manhattan Place in Harvey, Louisiana from Weingarten Realty Investors.[38] A portfolio of eight Midwestern shopping centers was acquired in November 2014. The purchase from Kimco Realty, a New York-based real estate investment trust, included shopping centers in Illinois, Iowa, Missouri, and Oklahoma. With this investment, the company increased its holdings to 15 states.[39]

In 2015, World Class purchased a three-property self-storage portfolio in Jackson, Mississippi and rebranded the properties to Great Value Storage, World Class’ storage management platform. The acquisition was made to expand the World Class footprint in the Southeast.[40]

World Class acquired a retail center in Austin, Texas in June 2016. The acquisition was made to replace the retail center with a self-storage facility under the Great Value Storage name.[41]

In September 2016, World Class was listed as the 16th largest self-storage operator in the country.[42] A few months later, World Class purchased 13 office buildings in Austin, Texas. The buildings had a total of 546,984 square feet and were purchased from Westmount Realty Capital.[43]

In 2016-7, several acquisitions have been made to expand World Class’ storage portfolio under the Great Value storage name.[44][45]

On August 14 2019, both World Class Holdings' offices in Austin, Texas and Nate Paul's personal residence in Westlake, Texas were raided by the FBI.[46]

References
  1. World Class Capital Group Website, “Offices.” Retrieved March 9, 2017
  2. Jan Buchholz (January 3, 2014). "14 to Watch in 2014". Austin Business Journal.
  3. Jan Buchholz (February 24, 2014). "Austin real estate company snags big Houston self-storage portfolio". Houston Business Journal. Retrieved April 29, 2015.
  4. Chris Nebenzahl (October 13, 2016). "2016 Top Owners". Commercial Property Executive. Retrieved March 9, 2017.
  5. The FBI Raid Of Texas Real Estate Investor Nate Paul (16 August 2019). "The FBI Raid Of Texas Real Estate Investor Nate Paul". Forbes. Retrieved 16 August 2019.
  6. World Class Capital Group Website, “Real Estate Equity.” Retrieved March 9, 2017.
  7. Keith Loria (February 28, 2017). “World Class Forms Commercial Mortgage-Lending Operation.” Commercial Property Executive. Retrieved March 9, 2017.
  8. Keith Loria (February 28, 2017). “World Class Forms Commercial Mortgage-Lending Operation.” Commercial Property Executive. Retrieved March 9, 2017.
  9. “Meet the 30 under 30: Finance.” Forbes. Retrieved March 9, 2017.
  10. Nathan Vardi (December 7, 2016). “A 29-Year-Old Just Attracted Five Former Top Credit Suisse Real Estate Bankers To His Firm. Retrieved March 9, 2017.”
  11. "Callahan, Smyth Depart World Class Capital. Commercial Mortgage Alert. (May 19, 2017).
  12. Kevin Curtin (August 3, 2018). “Playback: Eviction Notice”. Austin Chronicle.
  13. Shonda Novak (February 25, 2016) “Investor files fraud suit against Austin businessman Paul”. Austin American-Statesman.
  14. Shonda Novak (February 25, 2016) “Investor files fraud suit against Austin businessman Paul”. Austin American-Statesman.
  15. Francisco Vara-Orta (January 6, 2011). "Austinite buys Burnet Road Shopping Center". Austin Business Journal. Retrieved April 29, 2015.
  16. "Austin firm buys high-profile parcel downtown". Statesman. March 01, 2013. Retrieved April 29, 2015.
  17. Shonda Novak (August 2, 2012). "Firm buys lakefront tract near Four Seasons; development plans unclear". Statesman. Retrieved April 29, 2015.
  18. "World Class Capital Group Acquires 12-Property Portfolio From Sovran Self Storage". Inside Self-Storage. August 24, 2012.
  19. Jan Buchholz (April 3, 2013). "World Class Capital picks up 2,500 self storage units". Austin Business Journal. Retrieved April 29, 2015.
  20. Alexander Harris (December 30, 2014). "8 independent storage operators to watch in 2015". The SpareFoot Storage Beat. Retrieved April 29, 2015.
  21. "Great Value Storage". Great Value Storage.
  22. Sarah Drake (November 15, 2012). "World Class Capital acquires Ohio portfolio". Austin Business Journals. Retrieved April 29, 2015.
  23. Jan Buchholz (January 18, 2013). "World Class Capital nabs Las Vegas storage facility". Austin Business Journals. Retrieved April 29, 2015.
  24. Jan Buchholz (April 3, 2013). "World Class Capital picks up 2,500 self storage units". Austin Business Journal. Retrieved April 29, 2015.
  25. Sarah Drake (April 12, 2013). "World Class Capital adds Denver retail center to portfolio". Austin Business Journal. Retrieved April 29, 2015.
  26. Shonda Novak (March 1, 2013). "Austin firm buys high-profile parcel downtown". Statesman. Retrieved April 29, 2015.
  27. Gatley, Kim (March 11, 2013). "Galleria Oaks purchased by World Class Capital Group". Real Estate Austin.
  28. Jan Buchholz (June 12, 2013). "World Class Capital nabs properties in Houston, Los Angeles". Austin Business Journal. Retrieved April 29, 2015.
  29. Jan Buchholz (December 10, 2013). “World Class Capital buys another Texas shopping center.” Austin Business Journal. Retrieved March 9, 2017.
  30. Valentino Lucio (December 6, 2013). "Austin-based firm buys retail center on Northwest Side". My SA. Retrieved April 29, 2015.
  31. Shonda Novak (February 11, 2014). "Real estate firm buys former Cypress Semiconductor campus in Round Rock, plans mixed-use development". Statesman. Retrieved April 29, 2015.
  32. Michael Theis (February 12, 2014). "Cypress Semiconductor campus sold to developer World Class Capital". Austin Business Journal. Retrieved April 29, 2015
  33. "In the News: World Class Capital Group". Community Impact. April 24, 2014. Retrieved April 29, 2015.
  34. Jan Buchholz (February 24, 2014). "World Class Capital snags big Houston self-storage porfolio (sic)". Austin Business Journal.
  35. "Downtown Dallas' KPMG Centre tower bought by Austin Investor". The Dallas Morning News. 2014-03-25.
  36. "Behind the Deal: KPMG Centre's Rebranding & Rebirth". BisNow. January 29, 2015. Retrieved April 29, 2015.
  37. Alessandra Rose Miguel-Descalso (September 22, 2014). "World Class Capital Adds New Property to Texas Property Portfolio". Benzinga. Retrieved April 29, 2015.
  38. Ben Myers (October 23, 2014). "Manhattan Place shopping plaza in Harvey sells for $18.5M; new owner plans children's stores". NOLA.com. Retrieved April 29, 2015.
  39. "World Class Capital Group Acquires 1.2 Million Square Foot Retail Portfolio from Kimco" (Press release). Business Wire. November 17, 2014.
  40. “World Class Capital Group/Great Value Storage Acquires 3-Property Self-Storage Portfolio in Jackson, MS.” (September 22, 2015). Inside Self Storage. (Retrieved March 9, 2017).
  41. “World Class Capital Group to Replace Austin, TX, ‘Slackerville’ Center With Self-Storage.” (June 9, 2016). Inside Self Storage. Retrieved March 9, 2017.
  42. “Inside Self-Storage Releases 2016 Top-Operators List, Available in Multiple Formats.” (September 21, 2016). Inside Self Storage. Retrieved March 9, 2017.
  43. “Business digest: World Class Capital buys Austin office buildings.” (December 9, 2016). Statesman Staff. Retrieved March 9, 2017.
  44. Gary Dinges. January 5, 2017.“Austin developer buys downtown IHOP site.” Statesman. Retrieved March 9, 2017.
  45. “World Class Capital Expands Self-Storage Presence in Texas.” (February 1, 2017). Inside Self Storage. Retrieved March 9, 2017.
  46. "FBI Raids World Class Offices in Austin". www.bizjournals.com. Retrieved 2019-08-14.
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