50,000 sqft and up based on ease of management and economies of scale. Others considered subject to synergies with existing properties.
PRICE / FEET
Our goal is an average of $100/sf or less. The price per square foot is a function of occupancy, NOI, quality, lease term, location, cost to rebuild.
The idea is to think of a property like a child: to bring it up to its full potential.
Focus on secondary and tertiary markets where there is no premium for ‘location’ which does not necessarily translate into increased profits.
We never buy ‘empties’ – let someone else be a hero.
We never develop – again let someone else be a hero.
Start quarterly distributions as soon as possible with a goal of 8% + cash on cash.
We buy ‘average’ or ‘common’ properties that don’t deviate from the mean making it easier to rent and then resell. Unusual and architecturally interesting properties are maybe good art but bad business.
We want to finance out our cash – or sell if the price is very attractive – within a five year time frame.
If a deal is good, we move very quickly as we are a private group not accountable to committees etc. This gives us preferential access when discretion and/or speed are required by the seller