Partnering with Proven Developers

 

At our firm, we co-invest with experienced developers in the construction of high-demand real estate assets. These include medical office buildings, multifamily apartments, distribution centers, data centers, and more.

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Our Investment Criteria

 

We seek partnerships with developers who have a proven track record of successful development projects. Additionally, we require that developers have a minimum of 10% liquidity in cash on deposit with a major financial institution. This liquidity, secured with blocked funds, provides our investors and capital partners with the confidence to fund up to 90% of the construction costs.

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Our Approach to Risk Mitigation

 

Our approach eliminates the need for the extensive due diligence and financial scrutiny often required by banks. We base our trust in our partners on their proven track records and their ability to maintain proper liquidity.

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Patient Capital Partners

Our capital partners are patient investors. They can fund construction projects, including carry costs, without requiring payment for 2-3 years during the construction period. We also offer additional one-year extensions as needed to provide developers with sufficient time to stabilize tenancy and drive revenue to a level sufficient to increase the asset value and refinance.

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End of Construction Period

 

At the end of the construction and stabilization period, we offer to arrange long-term permanent debt from our lending partners. We also present buy-out or joint venture options when appropriate.

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Our Stance on Developer Contributions

 

We do not fund development projects when the developer has “no skin” or “very little skin” in the game. We do not accept increased land value through the entitlement process as the basis for their capital contribution.

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Trust in Our Risk Mitigation Strategy

 

Our capital partners entrust us with significant access to capital. This trust is based on our risk mitigation strategy of working only with proven developers that also meet our minimum liquidity requirements.

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Exceptions to Our Rules

 

In rare circumstances, we may co-invest with developers who have less than 10% of the construction budget required. However, this is usually only as a co-general partner or by bringing in other general partners with significant liquidity and experience. Developers that lack the required liquidity should expect to give up equity and/or control pari-passu in line with the amount of cash equity to be deployed along with co-general partners.