Broad Network of Strategic Alliances
ABR makes its property investments through joint ventures established with local real estate developers and operators. These joint venture partners, who typically source the property investments, possess expertise in their local real estate markets and property types, and provide strong organizational and entrepreneurial skills at the property level. By making its investments through these joint ventures, ABR is able to create excellent portfolio diversification — investing in a broad spectrum of property types in a wide variety of geographic markets.
Joint Venture Structure
Each investment is made through a separate joint venture established at the property level. All mortgages are also arranged at the property level, with the terms of each financing customized to suit the particular investment objectives and circumstances of the property. The joint ventures are typically structured as either a limited partnership or limited liability company, with both the joint venture partner and a wholly-owned subsidiary of ABR serving as a general partner or manager. Typically, the joint venture partner participates in the economic returns of the property investment after a preferred return has been made to the equity investors.