We believe that opportunities exist in the real estate market to achieve above-market, risk-adjusted returns through the purchase of assets whose full values have yet to be realized. The successful implementation of this philosophy relies on a thorough understanding of the cyclical nature of real estate and an ability to mitigate down-side risk through proactive asset management and extensive investment research. Strict adherence to our philosophy is assured through the integration of all phases of our investment process.
We seek to identify assets with unrealized potential, to purchase them at an appropriate price and to unlock the inherent value of the assets through the application of sound investment strategies, including: redevelopment and renovation, lease-up, recapitalization, repositioning, financing, change of management, forward purchase commitments, joint venture development. Furthermore, we aim to manage risk by creating portfolios that are diversified by product type, geographic location and product life cycle phases.
Proactive deal sourcing and initial assessment
- Leverage industry contacts to secure off-market deals
- On-site assessment
Rigorous Due Diligence and Underwriting
- Engineering/Environmental review
- Assess capital improvements
- Risk assessment
- Identify exit strategy
Flexible Structuring and Financing
- Financing terms compatible with exit strategy
- Favorable operating agreements
Investment Committee Approval
- Unanimous consent of all members required
Value Creation Process
- ROI analysis for each additional $ spent
- Revenue enhancement strategies
- Cost controls
- Disciplined yet opportunistic
- Capital market awareness
- Supply/Demand awareness
Focusing exclusively on the United States, we target the top 25 to 30 metropolitan markets. We look for markets that exhibit: favorable demographic trends (population, migration and immigration growth), low unemployment rates and high job growth markets in comparison to national and regional averages, high barriers to entry for new supply, home ownership affordability (a large differential in the cost to own versus the cost to rent), extensive infrastructure in terms of freeways, ports and air service that leads to superior access for residents, and quality of life and destination areas. Within each asset type (industrial, multifamily, office and retail), we have developed a unique set of investment criteria to identify compelling investment opportunities.