Strategy Parameters
- Preservation of investors’ capital
- Pro-active focus on off-market acquisitions.
- Properties that will provide long-term appreciation.
- Strong covenant tenants.
- Demonstratable capital growth.
- Target IRR of 9% to 14%.
- Acquire properties that have inefficiencies in property management, leasing and asset management.
Investment Strategy: Core Plus Value-Add Hybrid
Core plus value-add hybrid investment strategy that will contain mid- to high-quality assets in primary and secondary markets. The assets may contain re-leasing and operational inefficiencies.
Preferred Target Rate: 5.5% cash-on-cash yield 11% debt repayment and cash-on-cash yield
Objective: Preservation of capital
A Core Plus Strategy is an approach that encompasses low to moderate risk with the potential for upside appreciation.
In a Core Plus Strategy, the main driver is the ability to secure properties that have stepped up leases allowing for income growth and act as an inflation hedge, or to acquire properties that have a 25% plus proportion of leases up for renewal (that are below market rents) within a 2-year to 3-year period. This strategy will allow for increases in net operating income that translate to increases in investment yields and acts as an inflation hedge.
Our strategy is to consolidate assets that have not been institutionalized, allowing for a 10-year sunset clause built on exiting the properties via a disposition to an institutional buyer.
Our strategy will also search for properties that have strong mid to long-term debt in place that is assumable in a rising interest rate environment.
