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INVESTMENT & PRIVATE EQUITY
We believe in a balanced approach to real estate investment and value creation.
In doing so, we diversify across many asset classes and in many different cities and regions. We also diversify across ownership structures. Our portfolio contains properties where we are the sole owner, JV partnerships, syndicated projects where we are part of the General Partnership group, as well as multiple projects where we are simply Limited Partners.
In all instances, however, one thing remains constant: We use our knowledge and experience through our history in asset management to focus on properties which have the ability to add value within a specific set of defined criteria as outlined below:
Price
We use multiple criteria for determining if an asset is priced appropriately for acquisition. One example is that the property must be priced below replacement cost. In other words, if the same asset can be built new today for the same price or less than the acquisition price of the property in question, we will not consider that property for acquisition.
Tenant Mix & Submarket Strength
At the end of the day, the occupancy of the property needs to improve. We want to mitigate risk by purchasing assets which are highly diversified and/or are located in submarkets with extremely low vacancy rates and high demand. In these instances, we can mitigate the risk of decreasing profits by way of vacancies by almost always increasing the occupancy of the property over time.
Demographics
Demographics are highly important, and the criteria we look at varies by property type. In certain property types, the VPD or Vehicles Per Day that pass in front of the property is the main factor. In other instances, the per capita income of the surrounding population as well as the density of the population are the key metrics. Regardless of the asset class, we use detailed and specific demographic data to assist us in our decision-making processes.
Upside Potential
At the end of the day, we only invest in properties which have significant upside potential. Whether that upside be achieved through leasing of vacant spaces, raising rents to meet the average market rates, carrying out capital improvements which in turn increase the NOI (Net Operating Income) of the property, or via one of our multiple other value creation strategies, we only invest when we're comfortable the investment will be worth more in the future than it is today.
