We seek investment opportunities which provide a favorable risk-adjusted total return, with two, if not all three, of the following characteristics:
- Current return, even if modest.
- Short-run upside through active management.
- Optionality that creates significant long-term upside.
Our primary focus is to aggressively mitigate and manage risk that could result in any loss of invested capital. We’ve made no investments since 2008 as mispriced capital drove up real estate values to historic levels. With eventual monetary policy normalization and real economic shocks, we believe dislocations will start to occur, creating a favorable environment for real estate investors.
We do not make investments with “other people’s money”. Unless we are willing to invest ourselves, we pass on the opportunity. Our fees are cost-based; we will make our money with our investors through investment returns, not fees.
Our backgrounds and relationships allow us to participate in different real estate sectors, markets, and cycles. Over the years, with our predecessor firms, we have invested in new development, redevelopment and turnaround/distressed opportunities, as well as in operating businesses and real estate platforms.