• Investment Strategy
• Investment Criteria

Investment Philosophy

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• Investment Strategy

  The Real Estate Group's investment approach focuses primarily on opportunities to enhance, or in some cases create, property level cash flows through the application of a management-intensive strategy. This approach typically targets transactions in markets with attractive real estate fundamentals that offer the potential to increase returns through positive occupancy and rental growth momentum. Inherent in the group's investment process is the ability to target and apply multiple types of value-added strategies. Each one focuses principally on the underlying real estate value while offering the ability to generate attractive risk-adjusted returns in different market environments. A brief summary of each strategy is listed below:

  • Rehabilitation—renovating assets that are well-located in markets with attractive fundamentals but which tend to suffer from some form of physical obsolescence
  • Management—applying aggressive management and leasing strategies to neglected but well-located properties to bring rents up to current market levels
  • Capital—exploiting temporary mispricings of risk at the asset level by the real estate capital markets
  • Distress—purchasing, at highly discounted pricing, assets impaired by excessive or poorly structured leverage
  • Development—capitalizing on imbalances in supply and demand for space at the sub-market level
  
  

  Since 1995, the group has utilized each of these strategies to varying degrees depending on the existing economic and real estate market environment. The ability to earn attractive risk-adjusted returns making investments pursuant to these themes becomes more or less prevalent at different points in time.

  
  

  

  
  

• Investment Criteria

  Most investments are undertaken with local operating partners, which makes the creation of long term relationships an important part of the group's strategy. While an extensive network is already in place, the group is always looking for opportunities to establish new relationships with qualified partners. A brief description of the group's criteria for potential investment opportunities is summarized below:

Target Investment Size:	$10 million–$50 million of equity per transaction
Property Types:	Any property type except unentitled land
Property Status:	Rehabilitation, Acquisition, Development
Deal Structures:	Equity joint venture, preferred equity, fixed-rate mezzanine debt, participating mezzanine debt, discounted senior debt; no entity investments
Geographic Preference:	National focus, U.S.-only
Holding Period:	3 to 5 years
Typical Leverage:	50% to 75%