We believe commercial real estate investments, when acquired and managed properly, have offered superior returns over long periods of time when compared to almost any other asset class. Commercial real estate is still highly fragmented in ownership, and also is capital driven – offering unique opportunities for attractive acquisitions of under-capitalized, poorly managed, or otherwise under-valued properties.
We structure our transactions conservatively, both in terms of the amount of debt (lower leverage) and terms of debt (fixed rate vs. floating rate). While this strategy may reduce the overall return, it allows us to weather swings in the economic cycles to protect our investments. We will hold each asset until an opportunity is presented to sell it, rather than setting an arbitrary timeframe for dispositions.
Our general partners always decide to invest in each asset before we ask our partners to invest. Our goal is total alignment of our interests with our own investors. We protect all capital as if it were our own.
Finally, we will diversify our purchases geographically, focusing on America’s Heartland, where we understand the markets and where we have built strong local partners to work and co-invest with us.