Company Analysis

Investment Criteria

REAL ESTATE INVESTMENT CRITERIA

Our real estate investment strategy is built on identifying stable, quality assets that offer strong risk-adjusted returns.

Our key investment criteria include:

Property Types – We typically target the industrial sector, primarily warehousing and manufacturing, though we have a long history investing in value-add office projects and continue to entertain office projects with strong fundamentals and value opportunities. Our targeted niches include cold storage facilities and rail-served yards and warehouses.
Geographies – We invest across the country and will look at any market in the United States. We tend to avoid areas with high costs and weakening demand and tertiary locations which limit the potential pool of buyers, though we will consider unique investment theses in any location in the US.
Business Plan – We strive to deliver outsized returns for our investors and typically target value-add and opportunistic investments, while also considering basis plays and stabilized assets with unique value propositions. Our projected hold periods at acquisition usually range between two and four years.
Investment Size – Our typical investment size is a roughly $10-12 million purchase price, though we have purchased projects as large as $27 million and as small as $2 million.
Capitalization – Alongside our own equity, we partner with accredited investors, joint ventures and SMA structures. Our typical debt capitalization is between 50% and 60% loan to purchase price and we have utilized tenured lending relationships to lever transactions across 13 states and 16 different markets.

Operating Company Investment Criteria

We seek to invest in and partner with cash-flowing operating companies that demonstrate strong fundamentals, sustainable growth potential, and a competitive edge in their respective industries.

Our key focus areas include:

Industry Preference – We generally target businesses in stable sectors with strong long-term growth trends, including logistics, manufacturing, agriculture and food production and companies whose products and services support these sectors, such as technology and financial services.
Business Stage – Our primary interest lies in established companies with strong growth profiles that are looking to scale operations, optimize performance, or transition ownership.
Revenue & Profitability – We consider companies with proven revenue streams and strong operating profit margins. We typically search for enterprises with $1,000,000 to $3,000,000 in established EBITDA.
Competitive Advantage – We prioritize businesses with a unique value proposition, strong brand recognition, proprietary technology, or market leadership in their niche.
Management Team – A capable and experienced leadership team is essential. We seek businesses with strong management in place or willing to commit to a meaningful transition period and development of future leadership.
Geographic Focus – We are open to investing in companies operating within the United States.
Investment Structure – Our investment approach is flexible, though we focus on full buyouts and control positions. We incur acquisition debt only where reasonable for the deal (typically if the company has hard assets) and bring stable, long-term equity to the table at closing. We appreciate seller financing, though it is typically not our preference.

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