Risk management is vital to capital preservation and enhancement. We manage risk by identifying, quantifying and justifying risk for each potential acquisition. Prior to purchase, risk management strategies are developed with a particular focus on those that can be implemented quickly.
The going-in cost basis and potential for a deep buyer pool at disposition are critical to successful investment. We target assets that can be acquired at a discount-to-replacement cost and will have broad institutional appeal at disposition.
To ensure that adequate capital is available during the hold period, thorough diligence and prudent underwriting are essential. Our underwriting expertise establishes capital needs, and our creativity and experience in structuring debt and equity reduce risk.
Markets change quickly, and strategic adjustments to capitalize on opportunity or posture defensively are required. That’s why we develop flexible value enhancement strategies before purchase, and participate in day-to-day management. This enables us to quickly and decisively adjust strategy to preserve or enhance invested capital.
Commencing and completing value enhancement plans on an accelerated schedule can reduce risk. Once the decision to sell is made, speed and competent execution are critical. A seasoned executive, having invested personally in a property and taken responsibility for value enhancement plan execution, reduces risk.
Many risks can be mitigated upfront with a selective acquisition program implemented with discipline. Once acquired, judgment, experience, and an alignment of interests are the keys to executing a well-managed risk strategy.