INVESTMENT THESIS
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OUR STRATEGY
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VALUE PROPOSITION
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INVESTMENT THESIS At the heart of AREG Partners' success lies the fundamental beliefs of the original investment committee members.
1. REAL ESTATE IS A LOCAL BUSINESS
There is no substitute for local market knowledge. Local operators have the opportunity to outperform investors that do not intimately understand the market.
2. REAL ESTATE IS FULL TIME BUSINESS
There is no such thing as effective part time real estate. Competent professionals must constantly monitor and oversee properties to ensure their value of each asset is maximized.
3. SEEKING AND CREATING VALUE
Full time business seeking and creating value is essential.
The highest level, most profitable segment of the real estate deal process is finding assets below replacement cost and then ensuring value is created through professional, active management.
4. SELF MANAGEMENT
Self-management is imperative to success – ownership is the greatest performance incentive. Nobody is more effective at managing an asset than the one who owns it. This includes leasing, property management, and asset management.
5. THE BUY
“You make your money on the buy.” - The single most important key to success in a deal is the purchase price.
6. ACCESS TO CAPITAL
Commercial real estate assets need constant capital for building expenditures and new leasing expenses. Institutions with access to new debt and equity will outperform smaller operators without the same access to capital.
7. MIDDLE MARKET ASSETS
Middle market deals are too large for poorly capitalized local operators and too small for large institutions to manage effectively. Superior risk adjusted returns are found in the middle market.
VALUE PROPOSITION The foremost goal of our investment strategy is to acquire well located, under-valued commercial properties in lucrative markets.
1. WE OPERATE IN THE MOST PROFITABLE MARKET SEGMENT
We only focus on middle market deals. We feel these types of transactions offer the best risk adjusted returns.
2. WE LEASE & MANAGE EVERY ASSET WE OWN
There is no such thing as effective part time real estate. Competent professionals must constantly monitor and oversee properties to ensure their value of each asset is maximized.
3. WE HAVE ACCESS TO QUALITY DEAL FLOW
Finding suitable acquisitions is a full time job. We work harder than the competitors in our market to source tremendous, quality deal flow.
4. WE OFFER SYNDICATED TRANSACTIONS
We raise capital on a deal-to-deal basis and provide investors with the option to choose which deals they would like to partner with us on.
5. WE ARE WELL CAPITALIZED
We build significant relationships with equity partners and debt providers. When new capital is needed to maximize one of our current assets, we have the ability to take advantage of every opportunity.
6. WE ARE LOCAL
We understand the markets where we place our capital. We possess strong local relationships with brokers and other key vendors to ensure we maximize each asset's potential.
We Look At 1,000 Deals and Choose One
