Our Investment Strategy
Core investments have the lowest risk profile of our three investment strategies. These investments are made in stabilized, cash-flowing assets in great locations. They typically have low vacancy rates, strong rents, and durable tenant bases.
Value-Add investments have an increased risk profile, but therefore offer higher returns than core investments. We seek out underperforming assets that offer significant upside through rehab & renovation, re-renting, and re-financing. A typical value-add investment can require extensive capital improvements and effective management through one of our vertically integrated property management brands to unlock the value upside.
Opportunistic investments have the highest risk profile, but usually the highest returns. These investments typically entail “dirt-to-doors" development projects, but can also include plans of subdivision, Zoning By-Law or Official Plan amendments, severances, adaptive re-purposing, or any combination thereof.
A Limited Partnership (LP) is a form of partnership that must have at least one General Partner (GP). The GP is typically a corporation, experienced property manager, or real estate development firm. When utilized in real estate investment, think of it as a very sophisticated joint-venture.
The General Partner (GP) assumes full liability while one or more Limited Partner’s (LPs) are only liable up to the amount they contribute or invest. Limited Partner’s are outside investors who provide equity in exchange for an investment return via cash distributions. A Limited Partner must be an Accredited Investor.
Returns are calculated in a Distribution Waterfall. A Waterfall can include different combinations of LPs Return of Capital, LPs Preferred Return or the “hurdle rate”, a GP “Catch-Up,” and/or a Residual Split.
Please note this is an example waterfall equity structure purely for demonstrative purposes. Actual terms will vary on a per deal basis.