Investment Criteria

Value-Added Investments

  • Development satisfies unmet demand
  • Development conducted in areas with barriers to entry
  • Property requires substantial renovation, repositioning, recapitalization or financial restructuring
  • Property has unrealized potential
  • Purchase price is below replacement cost
  • Property is located in a growth area
  • Current owner is motivated to sell
  • Focus on properties owned by motivated sellers unable to refinance and lenders with delinquent loans that cannot be extended

Investment Terms

  • Mid-sized properties, typically requiring an equity commitment of $5-15 million, with total cost generally between $20-40 million
  • Joint venture partner equity contribution, often equal to 10% of total equity commitment
  • Property holding period generally 3-7 years
  • Preferred leverage ratio of 60%-70%