Our investment goal is to:
Select Strong Real Estate Sectors at a Value Inflection Point: Invest in real estate sectors where demand is likely to substantially exceed supply over our expected hold period, at an inflection point where revenue growth will likely drive accelerated growth in cash flow.
Invest in Projects on Strong Sites, in the Most Attractive Submarkets of Major Markets: Choose markets with proven and projected strong demand, and invest in the best submarkets and sites within those markets – those with constraints on new supply, and the likelihood of strong exit liquidity.
Underwrite and Invest With A Significant Margin of Safety: Invest only where a compelling cost basis and conservative capital structure provide protection of capital, and where we expect to earn high cash-on-cash yields (or a quick return of capital). Underwrite with assumptions that provide a cushion sufficient to allow the achievement of attractive returns across a range of downside scenarios.
Choose Great Partners: Partner with sector-leading “platform” companies: (1) whose proven sourcing, repositioning, and management capabilities can be unleashed by our investment and involvement; (2) whose discipline, judgment, and ability to execute with scale will allow them (and us), to take full advantage of attractive market opportunities; and (3) with whom we see the potential for a long-term partnership that can provide attractive ongoing investment opportunities.
Provide High Value-Add Capital With an Advantageous Deal Structure: Invest at a high-leverage point in the “value chain” (difficult-to-raise, but highly-valuable capital), under a deal structure which allows us to share meaningfully in the value which we help to create at both the real-estate and operating-company levels.