Acquisition Criteria

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!