Investment Rationale

Real Estate Experience

The Management Team believes it is capable of attaining their investment objectives based upon its experience in the various disciplines of real estate construction, development, finance and management. The members of the Management Team have extensive backgrounds in the areas of expertise necessary to effectively manage the targeted assets of the fund. In areas where more expertise and knowledge is warranted, the team will reach out to well-qualified members of the professional community for assistance. However, this should not dissuade any investor from doing their own research or due diligence on any targeted asset or sub-market. Investor input will be requested and encouraged as part of the underwriting, ownership and management of a particular asset.

Value Enhancement Opportunity

Value enhancement is the differentiator between ordinary and superior returns. The ability to add, or create value is a process that requires a keen understanding of a property's current value in relation to its potential status within a particular market. This involves the use of collective experience in asset valuation, financial analysis and an understanding of construction/renovation fundamentals. The Management Team has assembled this expertise through their experience, and through the use of trusted, independent third-party professionals. Our operational capabilities provide us the ability re-position a particular property in a timely, cost-efficient manner.

Asset Valuation and Fiscal Management

As "cash-flow buyers" of real estate, the Management Team has developed strict guidelines for underwriting the existing market value of a property on a cash flow basis. The underlying investment philosophy is guided by the belief that sufficient cash flow is paramount to the long-term viability of an asset. Few, if any, properties ever fail to perform when sufficient cash flow is present. The use of capital resources to reposition an asset must be off-set by a significant upswing in revenue and cash flow. Therefore, the Management Team will constantly upgrade their valuation and accounting software to ensure that there is accurate, current financial data available for each property on a timely basis.

Investment Philosophy

By placing an emphasis on value creation, value protection and long-term performance, the Management Team seeks to make real estate investments that consistently out perform traditional market investment vehicles. Each investment the Management Team sponsors will be guided by the following principles:

  1. Value Enhancement – includes property repositioning, rehab, recapitalization, operational enhancements and rental growth.

  2. Value Protection – rather than focus on exit strategy, the Management Team will focus on long-term market sustainability and quality of earnings in order to maximize the inherent worth of the asset. The quality of financial performance will dictate the disposition or re-financing of a property to recoup investment dollars and maximize total return.

  3. Capital Protection vs. Leverage – When at all possible, the Management Team will emphasize the use of longer term, fixed rate debt that is based upon conservative underwriting in order to promote financial stability and preserve capital.