The following represent our principal strategies:
Our strategy is to identify unique situations where assets are under-performing and/or mispriced in real estate and real businesses with unique upside or special situations where we can provide strategic value.
Opportunistic Multi-Family Real Estate Acquisitions
Acquire deep opportunistic multi-family communities in secondary and tertiary markets – primarily in the Southeastern United States Market. We look at Class B & Class C assets within 1970s, 1980s, and 1990s vintage from 200 – 500+ units through a single asset or roll up of a portfolio. Acquisition costs and capital expenditures generally range from $2 million to $50 million in order to re-position the asset and secure alpha through rent growth, occupancy stabilization, deferred maintenance, operational deficiencies, and overall profitability.
Land and Building Development
Acquire land in actively growing markets in the Greater Philadelphia, Greater Atlanta, and other higher-end suburban markets throughout the Southeastern United States and Texas ranging from 20-40 acres. This comprises of two strategies. In the Southeastern United States, land that is currently zoned for a minimum of 250 units for townhouse, workforce housing, and multi-family development with the intent to build out communities with our unique multi-family product. In Greater Philadelphia Area, acquire controlling interest or work in strategic partnership with existing land owners to implement site improvements and work towards securing sub-division approvals for sell to national home builders.
Our interests also includes student housing value-add and development opportunities that are within a few blocks of Tier I and Tier II Public and Private Universities markets where we see evidence of significant enrollment growth and underserved housing demands. 150 beds minimum per asset.
Additionally, opportunities pursuant to net lease, sale-leaseback and build-to-suit real estate development and re-development throughout the United States. Our priority is identifying opportunities that will provide steady returns over time, even as market conditions and macro-economic factors vary. Preference has been Healthcare, Data Centers, Retail, Industrial, Municipal/GSA Lease with a minimum term of 10 years in the form of NNN, NN, and Modified Gross Leases with an Investment Grade of B or greater as well as unrated credits.
Commercial Lots and Pad Sites
Commercial pad site development, ground leases, under-utilized, or pad sites that are currently dark. Ideally located at hard corners with intersected lights with traffic counts of 15,000 – 20,000 vehicles daily. These sites can be acquired and re-entitled for single-tenant, net-leased development in major and secondary MSAs.
Strong emphasis on creating build-to-suit programmatic relationships with national, investment-grade tenants.
Our preferred tenants include Chick-fil-A, Jersey Mikes, Raising Cane’s Chicken, Wingstop, Marco’s Pizza, Bridgestone/Firestone, Starbucks, PetSmart, Dollar General, AutoZone, and DaVita Dialysis.
Real Estate Assets with Re-Purpose Opportunities
There are many opportunities within our disruptive society to link commercial real estate, sustainable impact, and infrastructure. Look closely at old properties that nobody wants, including brownfield opportunities that can be re-purposed. These include industrial assets, warehouses, old malls, and big-box retail. The buildings will range from 50,000 to 250,000 square feet in size with 25 – 50 foot ceilings.
Growth-Stage Lower Middle Market Companies
Focus on growth equity, buyout, rollup, and debt investments in manufacturing companies, logistics, distribution, business services, banking/financial services, and healthcare. Pursue control transactions to provide liquidity to shareholders, financing for management buyouts, and capital for growth. Will control the business development, banking, and legal relationships while providing support to the budget and strategic planning.
These companies are reasonably-valued, profitable, smaller businesses – those with revenues of between $5 and $50 million and EBITDA from $1 million to $5 million.
Within these parameters, focus on companies with platform potential – unique assets and capabilities that, when combined with capital as well as outside expertise, make accelerated growth possible. Companies possessing strong management teams with recurring revenues and strong gross margins. Preference to see manageable capital expenditures and operating expenses that are typically highly variable.
Additionally, opportunities where bankruptcy and/or foreclosure is present, asset rich/cash poor scenarios, and collateral that is unique and esoteric in nature. Multiple solutions that can implemented, including potentially some business development opportunities.
Identifying and partnering with talented entrepreneurs under our accelerator strategy, to scale up corporate operations for both topline and bottom-line cash flow generation.
Very selective with a strong preference towards companies that have predictable and steady cash flow, but can grow substantially with an injection of capital, marketing, and better overall infrastructure to realize a scalable level.
Look for founders who have a tremendous track record and passion, while also aligning with us philosophically. The cultural alignment is just as important as the functional modality to the ebb and flow business.