Acquisition and Management Strategy

  • Focus on US income producing commercial real estate
  • Currently the suburban office market of Chicago, Illinois and Atlanta, Georgia
  • Target acquisition size of $20-90 million range
  • Acquire properties with capitalization rates on acquisition of 7.5% and higher
  • Occupancy levels between 70% and 90%
  • Acquire properties at a significant discount to replacement cost
  • Focus on properties with strong credit-worthy tenants and long term leases in place
  • Add value through lease-up of vacant space and maximize lease renewal rates upon maturity
  • Strict management of operating expenses

Financing Strategy

  • Maintain leverage at reasonable ratios of property value (target 55-75% LTV)
  • Lock in low fixed rate mortgages with medium to long terms
  • Utilize assumable mortgages when available
  • Mortgages on non-recourse basis
  • Stagger debt maturities to avoid concentration
  • Use the top lenders that are consistent with our strategic plans

Investment Attributes

  • High return on equity due to spread between capitalization rates and financing rates
  • Consistent quarterly cash distributions (paid since inception)
  • Potential for increased distributions due to contractual rental income increases
  • Opportunity to participate in unit offerings at significant discount to appraised net asset value
  • High growth real estate investment trust still in its growth phase
  • Enviable position relative to peer group based on high cash distribution and growth potential

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