Fund Strategy

1. Core Assets – Invest in Core Assets in prime locations with low leverage in a bifurcated investment market that is experiencing below market values. The funds will invest in either stabilized or transition properties. We are simply looking for good real estate at distressed prices. Our funds are not interested in buying distressed real estate or value added at distressed prices.


2. Risk Profile – Invest in Core Assets utilizing debt type risk profiles for equity type yields. Our funds will invest in whole interest or partial interest acquisitions. The risk of a decline in fund cash flow due to tenant loss or income interruption is mitigated by having multiple exit strategies.


3. Permanent “Prime” Locations – Invest in Core Assets with “Main at Main” locational characteristics that have a sustainable advantage over competitive locations. All investments will have to meet the requirements of our “Stress Test” locational quality matrix. The most desirable real estate to acquire is located at essential corners of intersections. Owners of this real estate also benefit from the myriad of uses that can backfill the property in the case of tenant vacancy.


4. Preservation of Invested Capital – Invest in Core Assets with sustainable and stable cash flow with limited chance of income interruption. Trade areas that have historical boom-bust tendencies will be avoided and assets will be sold during the mature phase of their investment cycles to maximize overall investment returns.


5. Clearing House – Play a major role in providing a clearing house for forced sellers who have no market for their properties. Illiquid on a portfolio basis and can be “cleared” (sold) into new ownership structures at greatly reduced prices (Re-pricing of risk). Our exit strategy will be established on the front end.


6. Target the “Black Hole” (Market Dislocation) – Our funds target the “Black Hole” that does not need to be served by government backed programs such as the TALF, TARP, PPIP, and SBA Guarantees to add liquidity for Fund liquidation. Core Assets that are of a quality level still able to attract traditional funding and realistic market underwriting and not bad enough for the preceding programs, hence Core Assets.


7. Realistic Financial Returns – Invest in Core Assets in prime locations with low leverage and conservative IRR financial projections. The funds will not use financial engineering in underwriting investments. Investments that would meet the target yields for comparable equity opportunity funds would not meet the stringent quality requirements dictated by our quality matrix.