ACQUISITIONS

We are currently focused on the following business interests through our business interests:

Founder-Led Operating Companies:

We work with family and founder-led private companies. Our industry-specific domain experience, flexibility of capital, and understanding of how everything works together to meet the moment at hand. It includes providing additional resources for growth, restructuring following temporary challenges, misaligned partnerships that require a corporate divestiture, and other special situations. 

In addition to the flexibility of capital, our supply chain, rolodex, and execution capacity build further growth within aligned principles. As business owners ourselves who also understand finance, we speak in a relatable language with other founders, while providing sophistication as needed to compete in the real world. 

Investment Criteria: 

Our criteria include non-auction and proprietary-sourced scenarios within specialty manufacturing, distribution, aerospace, defense, private aviation, infrastructure, waste management, wireless, and unique esoteric scenarios. These are businesses that remain drivers of our economic revival through ongoing demand.

We prefer controlling ownership, preferably with existing management continuity. Along with strong management teams, we seek predictable recurring revenues and high gross margins through manageable capital expenditures.

For any business under $5 million EBITDA, we consider unprofitable and breakeven revenue scenarios. It could include challenges others avoid if we can quantify a clear turnaround or growth plan. 

Critical Infrastructure & Corporate Sale-Leaseback/Build-To-Suit:

These include municipal wastewater treatment facilities, water towers, data centers, fuel storage facilities, government facilities, and other mission-critical facilities. 

Type transactional values will be greater than $10+ million with a minimum 10-year NNN lease backed by an investment grade or shadow investment-grade credit rating throughout North America. 

We also consider corporate-owned sale-leaseback scenarios for acquisition and/or corporate advisory at a minimum of $10 million.  We will consider non-investment grade scenarios under $10 million on a select basis.   This includes providing bridge loans for land acquisition and pre-construction work.  

Scenarios involve single-tenant industrial/warehouse/cold storage/logistics, healthcare, office, corporate headquarters, and regional operational centers.

Real Estate Special Situation Joint Ventures:

Within Florida, Georgia, Tennessee, Texas, and the Carolinas, we will consider sub-institutional Class A & Class B Joint Venture scenarios and sub-performing note acquisitions from $1 – $10 million for a 4 – 5-year hold period where we target a 2x - 2.5x yield on multi-family, or 1.8x – 2x yield on industrial within an opportunistic, special situations thesis. 

Usually these are scenarios when their current debt requires an injection of capital to right-size their loan or existing investors are demanding a return of capital.

The asset classes within this sub-institutional focus include 150+ unit multi-family, light industrial, mixed-use, and self-storage, where no single tenants account for more than 50% of the tenant mix.

Opportunistic Multi-Family Acquisitions:

We have a strong preference for direct acquisition of cash flowing assets nationwide across the most asset classes, including multi-family, industrial, life sciences, office, and retail with value-add built in at time of acquisition.  We will review distress scenarios as well, especially within office, industrial, and multi-family.  

We are especially keen on recently completed multi-family assets in the lease-up phase experiencing interest rate stress and other existing challenged multi-family assets with acquisition prices ranging from $30 million to $100 million. 

Opportunistic Industrial Assets and Development Sites:

These scenarios will require $10 – $50 million equity checks with select consideration toward mezzanine and preferred equity structures.

Other fee simple interest acquisitions will be considered on a timing and circumstance basis.

Zoned and Entitled Land Acquisitions:

Class A Suburban Infill Neighborhoods in Virginia, the Carolinas(Charlotte, Research Triangle, Greenville, Columbia most active), Georgia(suburban Atlanta and Savannah are most active), Central and Gulf Coast of Florida (Orlando, Tampa, Brandon, Sarasota, Fort Myers most active), Alabama(Birmingham), Tennessee (Nashville, Knoxville), and Texas(Dallas-Fort Worth Suburbs, Houston Suburbs, Austin, San Antonio most preferred) with average rents at a $1.45 minimum per square foot. 

Typically, these will be suburban infill sites on the perimeter of the current development activity in the respective market, including sites incorporating water. These locations will be higher-end neighborhoods surrounded by quality retail and schools. 

We are not interested in first into the neighborhood scenarios. 

Size:

Minimum 25 net residential acres. Zoned and Entitled to a minimum of 250 garden-style multi-family and townhouses. 

We would consider large mixed-use master-planned/planned unit developments (PUD) communities with a multi-family/townhouse component. 

Telecom / Fiber / Power Generation:

Seek expandable digital asset infrastructure scenarios where we can incorporate our executive, master development, and operational partners under acquisition and build-to-suit scenarios with a historical track record. 

It includes scenarios involving cell tower portfolios, renewable power generation/utility grade solar farm development, distributed antenna systems (DAS), and electric-as-service (EaaS) structured with preferably minimum 10-year investment-grade contractual revenues. 

We also pursue strategic relationships with real estate developers, asset owners, municipalities, and other government entities to develop private smart fiber networks that increase the NOI and enhance the attractiveness of their community with a state-of-the-art network. End users can access VOIP, TV/Video, cloud connection, and telemedicine services through our utility fiber infrastructure.