Our Investment Strategy

The global economic crisis caused by the COVID-19 pandemic is a once in a generation type event and will present unique opportunities for value investing in various sectors of the real estate market within the United States. Based on these conditions, we intend to pursue a wide range of distressed situations where we can capitalize on the current market conditions. These opportunities may include, but are not limited to:

• Overleveraged properties facing near term debt maturities
• Stalled developments or assets midway through renovations
• Fire sale divestitures of stabilized assets
• REO (Real Estate Owned)
• Obsolete retail that can be re-positioned or re-purposed
• Secured distressed loan purchases

We identify transitional apartment properties whose owners have mismanaged operations or delayed unit and amenity upgrades and capital expenditures.

These instances typically occur after a cycle of new development increases supply, and the class of new, amenity-rich apartments relegates older products to a lesser status. As a result, owners are challenged with reinvesting in their assets to remain competitive. Such properties present opportunities to strategically address physical inadequacies, refine operational management, increase rents, and add value.

Grocery-anchored neighborhood centers with the right ratio of anchor to inline shop space will prove to be consistent cash flow performers. They are resistant to internet commerce as local vendors engender customer loyalty and often provide convenience services not available over the internet. We look for centers with proven sales histories where we can assess the market position and health of the anchor tenants. Our strategy is following population growth in major markets. Upside potential exists in the leasing and management of the shop space in these centers.