Philosophy

Our approach to investing is based on the following core principles:

We are an operator, not a “financial facilitator.”  What distinguishes us most from other real estate investors is our unwavering commitment to the entire lifecycle of an asset and our strong sell discipline.  Our acquisition team, asset managers, property managers, building supervisors, maintenance engineers and portfolio accountants are involved in every stage of ownership, from acquisition through the management and eventual disposition of a property.  We are intimately involved with each asset we acquire and are passionate about maximizing value through diligent oversight of the maintenance, renovation, leasing and marketing of every property.

We focus on our core competencies, but are willing to adjust our investment strategy when warranted by cyclical changes.  Variations in economic cycles, general market sentiments and the availability and cost of capital at times result in changes to the risk/reward profile among various markets, sectors and asset classes.  When necessary, we shift our resources to different markets, sectors or asset classes that, as a result of market inefficiencies, offer the highest risk-adjusted returns at the time of investment. 

We will not sacrifice our investment discipline.  We believe today's financial markets require careful consideration, intensive research and, most of all, restraint.  We consistently apply our valuation methodology and will not rationalize our investment assumptions for the sake of an individual deal.  Perhaps the hardest investment discipline involves knowing when not to buy.  At various times in our history, we have purchased no real estate assets for an extended period of time due to over-inflated values.  At other times, we have sold assets when our peers were still committed to buying, based on our judgment that asset values were over-inflated.

We manage risk responsibly.  We continually assess the operational, financial and strategic risks associated with our investments.  We focus on the minutiae of the due diligence process by managing the process internally with limited third-party involvement.  All financial reporting from third-party service firms is reviewed and verified by our internal accounting staff at a detailed level to ensure accuracy.  We frequently re-underwrite our investments, taking into account credit market and local economic conditions, to determine the necessity of shifting the strategic direction for an asset.

We maintain a manageable size and foster a collaborative environment.  Our size allows us to provide a high level of attention to each institutional client, while maintaining uncommon levels of in-house resources and capabilities.  These resources are made all the more useful by our unique, cooperative organizational structure.

We separate ourselves from our competition by concentrating on the fundamentals of real estate. Our objective is to identify properties in improving markets that offer the opportunity to make an above-average profit, whether by acquiring them at discounts to replacement cost, making capital improvements or improving the management of the buildings we acquire.  We pride ourselves on our restraint - not all properties for sale in a good market or at a heavy discount are of interest to us.

We communicate frequently and proactively with our investors. Our team is dedicated to providing investors with the most thorough and timely reporting possible. For each investment entity, we furnish timely annual tax reporting and detailed quarterly reports that provide an overview of general market conditions and entity-specific operational performance. We also provide additional updates when significant events occur. Our principals also interact regularly with investors to address any questions that may arise regarding the management or performance of a particular asset.