In compliance with securities law, neither the company, nor any of its principals and agents engages in the general solicitation of, or general advertising to investors. The company only deals with accredited investors, as such terms defined under rule 501(a) of Regulation “D” under the Securities Act of 1933.
Investment Process
Following the acquisition of a property, aggressive hands-on management and marketing programs are required to turn potential into reality.
Investment opportunities targeted include residential properties, such as mixed-use, multi-family apartment buildings and commercial properties, such as office buildings and shopping centers. The company also purchases vacant land with development potential or for increased value as a result of re-zoning the property to a better use.
We believe that our strategy enables the company to achieve more favorable pricing, increase diversification, and maximize financing flexibility. We also pursue larger transactions where the company can maintain its overall investment diversification through co-investment or joint ventures with real estate firms employing similar investment objectives and criteria.
Our competitive advantage is the result of finance and real estate industry contacts through our principals and affiliates, which should generate significant deal flow outside of a competitive bid environment; our ability to rapidly identify untapped upside potential in investment opportunities; and the size of our resources which should enhance its ability to make desirable acquisitions because property owners will be more comfortable knowing that the company will have the funds necessary to promptly close transactions.
Exiting to Maximize Return. The company is generally a long-term holder of their properties. However, the company will consider and pursue exit strategies which maximize returns, including sale, refinancing, and recapitalization. The company believes that a portfolio of significant size with stable cash flow can be more attractive to institutional investors or large private real estate companies than individual investments. Selling a portfolio of investments with an aggregate revenue stream may result in greater profits than a sale of individual properties.
In connection with each prospective property acquisition, the company inspects the property and examines and analyzes the local marketplace and available records. The design of a capital improvements program to enhance the value of a property is often an integral part of the acquisition process. The company structures the acquisition and related financing on terms designed to meet their investment objectives. Creative structuring is often the cornerstone of a successful acquisition. Following acquisition, the company implements an aggressive program to increase the property’s cash flow, including but not limited to vacating illegal tenants, tenant buyouts, restructuring tenant leases, relocating tenants, adding additional sources of income, renovating vacant apartments, providing building-wide improvements, and expanding the rentable square footage of the property.
The company will seek to increase the value of its investments by:
Developing, renovating, redeveloping and repositioning its investments, when necessary.
Improving the management and leasing of its investments.
Optimizing the financial structure of its investments on favorable terms.
Participating in the recovery and growth of target markets.
Reducing operating expenses.