Investment Principles

There are a number of factors that enter into the decision to make a real estate investment. The criteria below focus on Office assets.

Size
Price
Occupancy
Hidden Value
Tenants
Financing
Capex

Size

200,000 SF and greater because of scale and ease of management. But we will consider a smaller location if we already own assets in the vicinity. Currently, however, the better opportunities lie in the larger portfolios.
Our market approach →

Philosophy

When evaluating institutional quality properties and portfolios, our philosophy guides every investment decision.

01

Once the initial money is invested we never intend to put in another investor penny.

02

We look at a property as if it were a child. Our role is to bring it up to its full potential. We are NOI driven but also revenue driven.

03

We rarely buy “empties” – let someone else be a hero.

04

We never develop – again, let someone else be a hero.

05

We want to finance out our cash as soon as possible – selling is rarely the optimal source of liquidity.

06

Our focus is primarily on secondary markets where pricing is far more reasonable. However from time to time we can enjoy non-gateway pricing in gateway cities.

07

We buy “average” or “common” properties that do not deviate from the mean which makes them easier to rent. Unusual and architecturally interesting properties may be good art but bad business.

08

If a deal is good, we can move very quickly because we are a private group and we are not burdened by layers of reporting requirements to tiers of committees. This gives us preferential access when discretion and/or speed are required by the seller.

09

Our “hold” period is indeterminate. It is hard enough to find wonderful opportunities without having the added burden of disposing them. What is good for brokers and money managers is not necessarily good for investors. After all, “clipping coupons” is not such an unpleasant business.
Read more about our market approach →