Real Estate Investments

We have a strong investment discipline and will adjust our investment strategy to capitalize on cyclical opportunities, often taking a contrarian approach to investing in real estate. We were one of the few real estate investment firms in the country to recognize that the historic run up in asset prices between 2003 and 2007 was unsustainable and that the underlying assumptions used to justify the underwriting of such acquisitions were unrealistic. Accordingly, we sold every remaining real estate asset that we had acquired prior to 2005, which has positioned us well to invest in the current environment.

Some relevant facts regarding our investment history are as follows:

Since the firm’s inception, we have acquired more than 7.75 million square feet of office, retail and industrial space, and over 1,100 residential lots, as well as hotel and apartment units.

We have invested in states throughout the country, including Florida, California, Arizona, Colorado, Virginia, Georgia, New Jersey, Maryland, Maine, Rhode Island, Texas, Massachusetts and North Carolina.

We typically target a medium-term holding period. The properties we have sold to date have been held for an average of 5.12 years.

	Value Investing • Acquired commercial real estate from distressed sellers
	Curtailed Acquisition Pace Prior to 2001 Recession • Refrained from acquisitions for 19 months over 2000-2001 waiting for an attractive re-entry point
	Acquired Assets in Improving Markets • Targeted major markets capitalizing on improving fundamentals • Used moderate leverage to take advantage of low interest rates
	Net Seller of Assets • Sold due to cap rate compression • Acquired lower risk assets at a sharply curtailed pace
	Acquisition Freeze prior to 2008 Recession • Did not acquire commercial real estate due to weakening fundamentals
	Back to Value Investing • Acquiring commercial and residential assets from distressed sellers