Investment Strategy

Creating Value at the Time of Acquisition

Our investment strategy is designed to take advantage of opportunistic or distressed niche opportunities in the real estate market. We seek to invest in real estate secured loans and to make direct investments. Our typical investments feature complex underlying issues or complications that are impairing the value of the asset. We seek to capitalize on these situations to create favorable acquisition pricing and a low investment-to-value basis. We utilize multiple interchangeable exit strategies that enable us to maximize value throughout the investment cycle.

Downside Protection

Our strategy is designed to limit downside risk through the following features:

• Optimization of value upon entry
• Participation in broad range of commercial property types
• Granularity through acquisition of whole loans, loan pools, and value-add investments
• Flexibility in variable duration of investments
• Distinct counter-party risk
• Utilization of multiple exit strategiess

Consistent Yield

We seek sustainable and consistent returns through multiple sources of income, including loan payment income streams, re-financings, payoffs, property operations, and dispositions.

Execution

We have developed a disciplined and methodical approach to due diligence which stresses a "bottom-up" approach to deal underwriting for both loan acquisitions and value-add or other opportunistic transactions. Our due diligence activities emphasize the following:

• Underwriting collateral cash flow
• Loan and credit review
• Litigation review
• Sponsorship risk
• Title review
• Real estate tax analysis
• Cost to complete analysis

Special Loan Servicing

We provide special loan servicing through our investment management platform. Continuing investment analysis enables us to adjust quickly to changing circumstances and to take immediate advantage of current market conditions. Our exit strategies are carefully planned for flexibility and designed to maximize yields by taking advantage of the loan terms and the dynamics of the situations causing distress.

 

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