Dhanani Private Equity Group
Exceptional leaders inspire and engage employees, instilling a sense of belief in the company’s vision. Nadyrshah “Nick” Dhanani, Chairman and Founder of Dhanani Private Equity Group (DPEG), embodies this vision and demonstrates it daily. Over the past 12 years, Nick has meticulously built this real estate business from the ground up, establishing himself as one of Houston’s premier developers and syndicators known as Dhanani Private Equity Group at present.
Nick started his journey by working night shifts as a cashier at a local gas station to slowly acquire the business, which led to multiple businesses and then eventually, led to real estate. Nick’s first investor was his sister and today, his company’s database has over 1,800 unique investors across 20 different states. As of 2022, Dhanani Private Equity Group surpassed $1 billion in assets under management and transactions. Nick’s vision, creativity and patience have been instrumental in the success of his company.
DPEG’s strategy is to acquire and develop real estate in prime, high-traffic locations. By combining this with a strong management team, the company has continued to provide its investor partners with an impressive Internal Rate of Return (IRR) of 20-35% per project. DPEG has performed a weighted-average IRR of 33% in 2021 and 46% in 2022 based on equity raised over multiple exits.
“The company stands on three fundamentals. No promote fees, full transparency and collective decision-making.” says Dhanani.
– 100% of the profit is equally distributed amongst all the partners based on their equity.
– DPEG provides bank statements and accounting on a monthly-basis to every partner on their investment.
– DPEG treats all our Limited Partners as active investors and major decisions are taken collectively in collaboration with the General Partner.
Over the course of the last decade, DPEG has acquired and developed a portfolio of over 100 projects located primarily in the Houston region, with a focus on Class A multifamily and retail shopping centers. Recently, there have been three note-worthy projects DPEG has acquired: 50 acres of land off US-59 and University Blvd, 90 acres of land in Imperial and the acquisition of DPEG’s “trophy asset”, a 400,000 sq ft office building in the prime Galleria sub-market.
Dhanani Private Equity Group also has nearly 3,000 residential units in the pipeline under various development, design and permitting stages, all of which are branded “Territory”, the company’s multifamily brand name. Dhanani stated that the company has shifted its primary focus to the development of apartments, as there is a significant demand for housing due to ongoing migration to the Houston area. The Stafford-based company launched its first apartment complex, the 288-unit Territory at Greenhouse and in 2021, sold it to a REIT which provided a 30% IRR to investors over a 28-month holding period. Nick says, “Our very first multifamily development, Territory at Greenhouse, was such a huge success that it fuelled growth in multifamily development projects for our company.”
Sharing experiences from DPEG’s early days, Nick says, “By far the most exciting time for us was when we started and our exceptional performance paved way for an established track record! To this date, all our investors have approached us based on word-of-mouth and the recognition of our achievements” Initially, it was the trust of Nick’s family and close friends that launched the first few projects. Having overcome the challenges over the early years, the team of DPEG has not looked back and the word has spread around the city and country of DPEG’s growth as every single one of its 100+ projects has made a profit, never once showing a loss.
“I am grateful for those who put their trust in us early on and those who continue to do the same since our first days in business.”
Over the years, DPEG has experienced explosive growth in real estate investments and developments. Nick’s leadership has expanded the group to bring all real-estate services in-house to make it easier to coordinate and streamline the process, as time is critical in the business.
DPEG Construction 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, two Golden Chicks Restaurant in Houston, and their own corporate office based in Stafford. The office is 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. The new office will provide DPEG with more space to welcome partners, expand new DPEG divisions, and make space for the growing team.
Nick’s astute leadership skills helped people in believing the vision of DPEG and set the company on the journey to success. He believes that leadership comes from top down and success is a byproduct of the entire team sharing the vision of its leadership team. He continues, “I also believe that operating a lean team where everyone wears multiple hats helps the company grow quicker.” 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, three new principals and nearly 10 new employees joined the team.
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.
In 2019, Dhanani Private Equity Group (DPEG) formed The DPEG Foundation to give back to non-profit organizations meaningful to both the company and their investor partners. At their 2022 Holiday Gala attended by over 1,000 investor partners, the DPEG Foundation proudly awarded $35,000 to five organizations. According to Nick, 2022 inaugural charitable awards was just the beginning for both DPEG and the DPEG Foundation. “Next year, our goal is do more, achieve more and to give back even more. With Dhanani Private Equity Group having a record 2022 year, the future looks brighter than ever.