Demographics: RealAssets™ will invest in select properties located in markets that show positive demographic potential. The market will have strong economic and rent growth, strong employment trends and a diversity of employers, vacancy compression as well as other specific criteria.
Location: Major metropolitan areas. Secondary markets may be considered when characterized by exceptional growth and demographics.
Hub and Spokes/Mushroom: In the markets that RealAssets™ identifies as investment worthy, RealAssets™ will strive to invest in properties that are relatively close to each other geographically to streamline property management costs and to accumulate enough mass to utilize multiple exit strategies ranging from an individual property, a regional portfolio, or a national portfolio.
Local and Strategic Alliance Partners: To augment deal flow and provide a wider diversity of investments, RealAssets™ has vetted, strong, and best in class reputable local partners who act as the main sponsor or share the general partner duties with RealAssets™, while having significant "skin in the game." However, RealAssets™ will not shy away from closing on deals where RealAssets™ is the sole general partner when needed.
Asset Class: While implementing the curated, multi manager approach above, RealAssets™ will invest in core through value add properties within the areas of expertise of local Strategic Alliance Partner. Rehab properties may be considered when accompanied by exceptional metrics going forward and a significant upside, while providing margins of safety.
Deal Size: $10,000,000 and up with a preference for larger properties of up to $65,000,000.
· Value add projects- At least 5-6% cash on cash in year 1. Target IRR mid to high-teens.
· Stabilized projects- At least 7-8% cash on cash in year 1. Target IRR low to mid-teens.