Characteristics we look for:

Location:

• Generally we prefer one of the “Top Ten States” that we have identified with favorable tax policy for Real Estate Investment.
• We also use the term “Meds & Eds” for locations that are near major medical centers or major universities.
• Class “A” properties – generally refer to the quality of construction. The higher quality properties are generally located in the high demand, better locations, within the local market.
• We do not focus on the “primary” markets, as they tend to be over priced, instead we look to the secondary markets, where higher Cap Rates can still be found.
• The most desired locations within the local market.
• Shadow Anchored centers: They may share the same parking lot with a Wal-Mart, Target, Home Depot, etc.

Property Type:

• Retail: Primarily multi-tenant, but will consider Single tenant with long term leases (Currently this is our expertise).
• Grocery anchored Centers.
• Other property types may be considered in the future, as we acquire the expert knowledge.

Demographics:

• We look for secondary markets where the average annual household income is $75,000 or greater.

Tenants:

• Investment Grade – Credit Tenants
• National Publicly Traded, Corporate Tenants
• National Private Tenants
• Regional Tenants
• National Franchises, with strong franchisee guarantee
• Limited Local Tenants
• Limited Local Restaurant Tenants

Leases:

• Triple Net Leases (NNN)
• Absolute Triple Net Leases (NNN)
• Absolute Double Net Leases (NN)

Generally:

• Priced at an 7.0% “in place” Cap Rate or better
• Current rents are at or below market rates
• Properties are near or fully rented
• Lease expiration’s are staggered or spread out
• Current Leases with rent escalations, either annually or every 5 years.

We look at all these factors with the goal of maximizing predictability and minimizing the investment risk!