Strategies

Value Add Projects

We target mismanaged and undervalued properties that in need of capital to upgrade

In detail…

We seek to make aggressive improvements to existing property and capturing returns through improving occupancy rates, increasing average rents, or both. Successful value add investing typically involves exiting at a significantly higher valuation by capturing returns both through cash flow and appreciation.

Real estate investments that entail substantial capital improvements and potentially complex business plans, .

  • Acquisition of an under-appreciated asset an attractive going-in basis.
  • Value-add improvements, such as new appliances; new HVAC systems; updated windows; improved common areas; enhanced landscaping and curb appeal; on-site services like gyms, pools, or daycare.
  • A repositioning of the property, perhaps including a renaming or rebranding of the property.
  • Bringing rents to market and/or carrying out a lease-up plan to get closer to 100% occupancy, improving NOI of the asset.

In detail…

A “distressed asset” refers to an investment in real property that is priced below market value—typically due to solvency or cash flow issues on the part of the asset’s current operator, manager, or owner. Distressed asset opportunities arise at particular moments when the seller is encumbered and the market for such properties is relatively cool, creating a demand mismatch for capital.

Distressed assets are considered by some to be counter-cyclical investment vehicles and attractive diversification options during moments of market volatility.

  • Being able to identify and acquire the distressed asset at an optimal moment, given broader market and asset pricing dynamics.
  • Having the resources, experience, and wherewithal to realize the untapped value of the distressed asset by managing through sale, repayment, or other resolution.
  • Future return potential is dependent on future cash flows, and hence depends on unlocking asset value.
  • Distressed property opportunities may emerge in 2025 and beyond due to current capital market dislocation.

Distressed Opportunities

Our flexible capital structure allow us to seek distressed opportunities

Stabilized Investments

We believe stabilized investments are most attractive during market recovery phase when capital is in demand

In detail…

Stabilized properties have both occupancy (typically around 90%+) and lease terms at levels that allow a new owner to acquire the asset and receive substantial net cash flow without making any substantial contributions to the property. The hallmark of stabilized properties is consistent and predictable cash flow, often with long-term tenants in place. This stability can make these investments particularly attractive to those seeking a low-risk profile and steady returns.

Stabilized assets can be located in any established market with solid fundamentals, and offer little room for significant value appreciation but provide a consistent, lower-risk income stream.

  • 90%-97% occupancy
  • No major capital expenditures required in the near future
  • Cap rate that is 150-200 basis points above the cost of capital (mortgage rates)
  • Cash on cash return between 5-8%

We invest in a variety of asset classes to ensure that we can capture a wide range of opportunities and are not locked in a particular cycle

Multifamily, student housing, hospitality/senior living

Multifamily

We seek apartment buildings between 50 to 300 units

Student Housing

We target student housing in elite universities or large institutions

Hospitality / Senior Living

We look for well amenitized hospitality assets with an emphasis on senior living