Real Estate Partners L.L.C.
Investments will be pursued across three distinct risk and return profiles: Core+, Value Add and Development. The firm’s capital partners will be aligned with those investment opportunities that best satisfy their overall investment expectations. Our focused investment objectives are intended to meet a variety of investment criteria: income potential, value enhancement, risk tolerance and hold period.
Well located Core+ investments of good quality will be pursued to provide consistent cash flow with moderate to strong growth potential. These assets will be purchased for longer term hold periods where market dynamics point to supply constraints, strong sustainable demand and the opportunity for internal rates of return at 8% or higher. Strong performance will be pursued by combining aggressive asset management and cost containment programs with a strong targeted leasing program geared towards value enhancement.
Value Add investments requiring extensive repositioning will be pursued to provide moderate near term cash flow and greater terminal value over a shorter one to three year hold period, with targeted internal rates of return greater than 12%. These value add investments may require extensive repositioning with a capital improvement plan combining site plan improvements, exterior upgrades and renovations of interior space including lobbies, common areas and tenant improvements. These repositioning efforts will be combined with aggressive asset management to maximize the increase in value.
New Development will be focused in superior locations where fundamentals are strong and or improving and the opportunity exists to produce internal rates of return that exceed 15%. Projects that present significant entitlement risk will be avoided.
Each investment made will draw upon the experience and relationships of each of the two founders of Watson Setzer Real Estate Partners LLC. We will create a specific investment strategy and budget to capture the inherent potential of each asset acquired. Strategies will most likely include extensive repositioning combining selective capital improvement projects to re-brand or reintroduce assets, aggressive leasing to maximize occupancy potential, diligent asset management to optimize operating efficiencies and appropriate capital structures to mitigate risk as best possible.