Credit investment strategy

Optimize risk-adjusted returns by employing a rigorous, data-driven approach to investing in value-add and opportunistic debt investments

 

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Focus on quality

We focus on credit quality and strive to achieve an attractive basis in our investments. We target investments that are as senior in the capital structure as possible and backed by commercial real estate-related assets or real estate operating companies located throughout the United States. 

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Aim to preserve capital and emphasize consistent income

We seek durable, predictable returns and repayment. We do not rely upon leverage to achieve returns. Instead, we focus on mitigating real estate risk.

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Fundamental analysis

We perform relative value analyses to properly price and manage risks and maintain a credit-driven investment discipline using real-time market intelligence. We perform independent, "bottom up" underwriting and do not rely on third party valuations or ratings. Rather, experienced, knowledgeable, and financially-sound sponsorship is paramount. We are early adopters of new technologies that enhance our ability to identify investment opportunities.
 

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Operationally-intensive management

Our approach to real estate asset management is operationally-intensive.  We leverage our team’s specialized expertise in owning and operating a variety of property types. Our proactive, analytical approach focuses on producing a consistent income stream and favorable returns for our limited partners.

Investment Parameters

  • Collateral: Transitional and value-add properties

  • Sponsorship: High net worth and institutional-grade borrowers

  • Property Types: office, industrial, medical office, retail, hospitality, multifamily properties, including market-rate, rent-regulated, age-restricted, student housing and/or mobile home parks

  • Transactions: Acquisitions, refinancings, recapitalizations, DPOs, value-add improvements, rehabilitation and repositioning    

  • Geography: Within the United States

  • Debt Originations: "Stretch Senior" Loans, B-Notes, Mezzanine and Preferred Equity, Participating Debt

  • Targeted Net Returns: 7-11% IRR

  • Term: Floating and Fixed (up to 10 years)

  • Investment Size: $10 million up to $75 million per transaction