Diverse Strategies Targeting Low-Correlation Investments

Single-Asset Syndication

Single-Asset Syndication

Strategy:

  • Multifamily Value-Add

Investment Objective:

  • Produce income and capital growth
  • Preserve capital

Investment Characteristics:

  • Experienced operator, excellent reputation, established track-record of delivering on their promises
  • Single-asset syndication
  • Existing building
  • 1960s-1990s vintage
  • Legacy Owner
  • Off-market
  • Assumable debt
  • Seller financing

Business Plan:

  • Renovate and improve the asset
  • Improve operations
  • Stabilize
  • Position for sale at an attractive exit that leaves sufficient upside to attract subsequent buyers
  • Blended income + appreciation
  • Distributions typically being 6-12-months following acquisition
  • 6-12% income yield
  • 3-5-year hold
  • Targeted 1.8-3x equity multiple

Downside Risk:

  • Local economic conditions
  • National macroeconomic conditions including rising interest rates could impact exit timeline
  • Renovations and improved management likely to increase NOI and produce cashflow
Hotel Multifamily Fund Investments

Hotel-Multifamily Fund Investments

Strategy:

  • Diversification across assets and markets 

Investment Objectives:

  • Risk adjusted blended Income + Capital Preservation & Capital Growth

Investment Characteristics: 

  • Niche expertise in asset-class conversions.
  • Experienced operator, excellent reputation, established track-record of delivering on their promises
  • Operating Hotels
  • Distributions are prorated, starting the quarter the investor joins
  • Private Equity Fund, diversifies investor holdings and mitigates downside risk

Business Plan:

  • Entitlement/Zoning
  • Demolition/Renovation
  • Stabilize & Lease-up
  • Exit at peak ROI or hold for cashflow depending on market conditions

Downside Risk:

  • Single asset underperformance is protected by overperforming assets across the fund
  • Macro-level interest rate environment could impact ability to refinance or exit

Implication:

  • Potential for lower yields or longer hold times
  • Likelihood of continued income as cash flowing assets continue to produce income
Land Development

Land Development

Strategy:

  • Acquire off-market
  • Discounted basis
  • Purpose-driven entitlement for future buyers

Investment Objective:

  • Capital preservation & Capital Appreciation
  • 1-5-year hold
  • 3-6x equity multiple

Investment Characteristics:

  • Niche expertise in land development in targeted markets
  • Experienced operator, excellent reputation, established track-record of delivering on their promises
  • Low opex/maintenance costs
  • All cash, no debt or note on the property to reduce and mitigate downside risk

Business Plan:

  • Buy & hold
  • Leverage network to locate interested buyers
  • Purpose-drive value add via entitlement for future buyer
  • Improvements as needed to position for exit
  • Hyper-local niche expertise

Downside Risk:

  • Macro risk
  • Interest rates
  • Political risk
  • Implication
  • In the event of a macro-level risk event, the investment term could be extended.