From the very beginning, DPEG’s approach has been the same of developing and acquiring various properties in high-traffic locations that not only enable small and large companies to thrive, but also contribute to excellent returns for their investors. Together with a strong management team, DPEG was able to offer its investors and partners an average IRR between 20-35% in over 100 projects – the lowest return is 7.70% and the highest is 137% per year.
A visionary approach
Nick Dhanani is the powerhouse, vision and face of Dhanani Private Equity Group and has built the business brick by brick from day one. Nick’s career began from humble beginnings when he immigrated to Houston in the mid-1980s and worked as a night cashier in a grocery store. After a few years of experience, he started buying and running his own businesses. With the proceeds from his early business, Nick decided to invest in real estate and develop real estate, and with that, DPEG was born. Nick started this company by developing convenience stores, which was his expertise at the time. After developing over 50 stores, he quickly turned to building, renting, and operating another 50+ malls as the stores grew. In the middle of this trip he also had experience building fast food and hotels.
Lately, multi-family housing development has been a top priority for Nick. DPEG has seen tremendous growth as a company in the past few years, starting with deals worth a few million dollars and now launching projects over $ 75 million. Just a few months ago, the DPEG team completed its very first multi-family project, The Territory at Greenhouse in Katy, TX, which began development in 2018. This exit not only produced an IRR of 30% for investors, but also a record for the highest price per door in the history of the Katy submarket. Nick’s philosophy is that the deal will pay off as long as the bottom line numbers make sense for everyone involved. Along the way, Nick’s vision and persistence led his team and company to grow to $ 700 million under management. In 2020, Houston Mayor Sylvester Turner recognized Nick for his contribution to the business development of Houston and beyond. Today and in the future, April 4th in Houston, Texas is known as “Nick Dhanani” Day.
DPEG was founded on Nick’s desire to help his friends and family build long-term wealth, preserve their capital, and educate them on how to use money as a tool to get more returns. “Time is our greatest asset, and there is a huge difference between working for your dollar and putting your hard-earned money to work for you.” Nick always said.
Sail through the challenges
Sharing experiences from the early days of the DPEG, says Nick, “By far the most difficult time for us was when we started trying to raise money for investments. Without an established track record, you can imagine how difficult it is to convince investors to invest with you!” At first, it was the trust that Nick’s family and close friends had in him that really helped overcome hurdles. The success and growth of DPEG quickly spread around the city, because every single project they have carried out so far has made a profit.
Another challenging time for DPEG was the early days of the COVID-19 pandemic, which turned the world and business practices completely upside down. Millions of companies and their investors either suffered losses or closed down for good. DPEG and its team have been agile in implementing new strategies to offset the effects of the pandemic. They also worked with investors to make sure their projects were safe, as the team believed in being patient with a long-term vision. Ultimately, DPEG assumed that real estate investments and income generating assets would always come out as winners.
Learnings, team building and leadership
The DPEG team and its investors are a family who take care of each other and enjoy the way through all the ups and downs together. When asked what he would like to know before starting this business, Nick says: “I wish I could convey my vision to investors in the early days of the company, before I got the groundwork. Building new relationships with no track record was challenging, but we’ve come this far since then. I am grateful to those who put their trust in us early on and to those who have continued to do so since our first days in business. “
As a leader, Nick believes that mindset plays a huge role in a company’s success. Leadership comes top down and success is a by-product when the entire team shares the same vision. He also believes that running a lean team with everyone wearing multiple hats will help the company grow faster. The Dhanani Private Equity Group is well on the way to achieving sales of over 200 million euros in 2021 alone.