Investment Types

INVESTMENT TYPES

Core – Buy Right and Hold

  • Acquire newer properties below replacement cost to protect against supply coming to the market.
  • Lock in long-term low leverage fixed-rate financing at favorable rates.
  • Some opportunity to expand NOI through light renovation, better management, etc.
  • Target high single-digit cash returns with long term IRRs in the 9-12% range.

Value-Add – Renovation and Repositioning

  • Identify properties with below-market rents caused by obsolescence or poor management.
  • Implement an improvement plan that encompasses interior and exterior improvements along with better leasing and operational processes.
  • Significantly increase NOI and stabilize the property.
  • Target mid to high single-digit cash returns with long term IRRs in the 11-14% range.

Opportunistic – Lending, Bridge Financing, Construction & Special Situations

  • LRE’s business model provides flexibility to enter new markets and capitalize on dynamics and trends that are transpiring in respective markets.
  • Identify transactions where there is a dislocation in the market or a capital partner that is in need of a recapitalization or buy-out.
  • Partner with developers for ground-up construction deals with competitive advantages.
  • Return profile for opportunistic deals vary.
Contact Us