Dhanani Private Equity Group Hits Billion Dollar Mark and Takes on Fort Bend County

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COVER STORY | By Patti Parish-Kaminski  | Photos by Kelley Sweet Photography –

Setting goals, developing new initiatives, launching projects – these are all objectives typically associated with a new year, but for Dhanani Private Equity Group (DPEG), the new year looks a bit different. In addition to the typical forecasting for the coming year, DPEG begins 2023 with a celebration of the ten-year-old Sugar Land based company achieving major milestones. DPEG closed 2022 with a billion dollars in transactions and assets under management. And according to Chief Executive Officer and founder Nadyrshah “Nick” Dhanani, that’s only the beginning for this company that not only focuses on high returns but developing lasting partnerships with their investors.

2022: A Year of Milestones – Close to Home

Reaching the billion dollar mark in transactions was just one of the highlights of 2022, a year when many industries still struggled due to the pandemic.  “Our highest return rose from 137% to 178.8% in 2022, which resulted from the sale of a retail center that was acquired during COVID-19 in January 2021,” said Nikhil Dhanani, President.

50-Acres by Smart Financial Centre

With the acquisition of four different landbank assets of over 250 acres across Texas, 150+ acres of this acquisition was close to home in Sugar Land. Last November, DPEG closed on a 50-acre tract next to Sugar Land’s Smart Financial Centre purchasing the property from Texas-based Fluor Corp.  The mixed-use development will consist of 50% commercial development, including office, retail and restaurants, and 50% residential townhomes and/or condos.

“Our current plans are for us build townhomes, or other residential units as part of this mixed-use development, as well as part of the commercial development, partner for a portion of the development and possibly sell some of it,” said Nikhil Dhanani, who shared that DPEG has already begun the process of due diligence for the project to move forward with a projected fourth quarter 2023 start date.

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The property is located along University Boulevard and Lexington and will be surrounded by the Smart Financial Centre, the Texas Instruments campus, the Avalon at Telfair neighborhood and the University of Houston at Sugar Land.  The goal is to create an activity center where residents can live, work and enjoy restaurants and retail, plus the University of Houston’s College of Technology addition and the expansion of the Houston Methodist Sugar Land Hospital campus.

Territory at Telfair

Another DPEG milestone for 2022 is the Sugar Land high-end retirement community scheduled to break ground this year:  Territory at Telfair.  Conveniently located near restaurants, shopping, HEB and a major hospital on Highway 90 and Highway 6, this innovative retirement community for residents 55+ features upscale amenities in a four-story building.

“Territory at Telfair will contain over 20,000 square feet of amenities, including a spa, theatre, dog park, pickle ball court – all types of activities and on-site transportation,” said Nikhil Dhanani.

The project, developed by DPEG, will contain 160 units and will be classified as an A++ product for senior living.

Imperial Sugar Land

Another investment in Sugar Land in 2022, DPEG purchased +/-92 acres in the Imperial development from Johnson Development Corporation.  Plans for this purchase include mixed-used development including restaurants and fast-food establishments along Highway 6 and University with a focus on retail.

The firm raised the landbank assets required equity in less than 60 minutes from nearly 200 investors when the opportunity arose for this purchase.  And that type of relationship speaks to the philosophy that CEO Nick Dhanani and his team has built with his what he calls DPEG’s “partners.”

A humble man from humble beginnings has contributed to shaping Nick Dhanani into the type of CEO that he is – a man who wants to help as many people as possible to “build their wealth and their futures.”  And the end result?  A trusting relationship with DPEG’s over 1,400 partners.

“Making money is the easiest thing to do,” shared Nick Dhanani.  “Preserving it as wealth is the most difficult part and that is what we are good at.”

DPEG’s First Trophy Asset

Last year brought another first for the private equity firm, their first trophy asset.  Trophy real estate refers to a property that ranks in the top 2.5% in terms of value, demand, location or other high-quality attributes which increase market value.  Acquiring Galleria 1 and 2, a 400,000 square foot, mixed use office building at the intersection of Westheimer and Sage in Houston gave DPEG their first trophy asset.

“We are turning the ground floor into retail and are working with a few high-end restaurants to locate there,” said Nikhil Dhanani.  “The asset sits on 5.7 acres, and with our investors and capital, we have the upper hand because of our purchase price.  We can turn this asset around and aim to lease the building up quickly with our below market office rent.”

Expanding DPEG

DPEG has extensive experience in developing shopping centers, convenience stores and multiple real estate ventures, so it seemed only natural for the company to launch DPEG Construction in 2022.  “Bringing all real estate services in house makes it easier for us to coordinate and streamline the process,” said Nikhil Dhanani.  “Time is critical in our business.”

DPEG Construction, led by Ominiyo Akindojo, launched in January of 2022 with the first project beginning in March, a 27,000 square foot endeavor, the Y Shops and office condos at Kingsland.  Next projects included tenant improvement projects for DPEG properties, and the company recently completed a Golden Chicks Restaurant in Houston.

With the success of DPEG Construction and DPEG Insurance, DPEG plans to add other branches to the DPEG holdings, including a title and brokerage company, so that all related services can be accomplished in house.

With the growth and success of the past year, adding to Team DPEG was the next natural step. Perhaps thought of as a small family run company, DPEG’s growth and mindset is distinctly that of a large financial institution, and to continue that success, a number of new principals and employees joined the team.

 

 

Expansion for DPEG also means relocating to their new office in Stafford, part of one of the largest deal’s in DPEG’s history to date, raising over $37 million in equity to purchase a $90+ million asset, The Fountains On the Lake.

“With this project, we promised a cash on cash distribution and physical 10% payout to our investors every year, leaving 3% for special distribution.  We achieved this successfully for the last four quarters,” said Nikhil Dhanani.  “What we promise, we deliver.”

The new office will provide DPEG with more space to welcome partners and expand new DPEG divisions.

For more information about Dhanani Private Equity Group and their upcoming projects, visit dhananipeg.com or call 281.561.5135.