Our Investment Principles
In the most distressed residential real estate market conditions in the post-war economy, 278,000 new homes still sold after a sharp decline following the expiration of the Homebuyer Tax Credit. Public Builders were forced to shift their models to a focus on value. “A” locations, strong amenities, and value pricing are what continue to attract customers. Therefore, investing in the right place under a flexible structure and positioning a project appropriately are what separate success from failure in current market conditions. This premise is the foundation of our niche strategy.
Five fundamental disciplines create the backbone of this approach:
- We seek to minimize approval risk. We typically purchase land only with the existing entitlements necessary for the intended use, or with the proper safeguards to warrant investments in “soft costs.”
- We are not “concept to completion” investors. We participate in a specific segment of the deal lifecycle and stay out of the homebuilding business.
- We aim to exploit the most relevant market opportunities. We invest in distressed land development and housing environments and intend to leverage opportunities to invest in strong value plays.
- Our approach is focused on the earliest possible exit which provides the greatest returns relative to risk.
- We follow a strict set of criteria related to the project location and design with the goal of meeting the investment criteria of our end users.