To underwrite the cap rates of our acquisitions against expected cash flow in an effort to:
Generate an attractive level of current income for distribution
Preserve our shareholders' capital
Achieve long-term appreciation of the asset portfolio producing a compelling rate of return
Approach
Seek institutional grade properties across multiple asset types, tenant industries and geographies with the following characteristics:
Quality assets acquired at CAP rates with healthy 2-3% CAP rate spreads above the mortgage interest rate
Strong cash income quickly producing 7% or greater cash on cash returns based on today’s interest rates
Diversified and stable credit tenants
Ability, at purchase, to prudently leverage up to 75% of the property value to maximize capital efficiency noting our overall debt to market cap ratio target is between 60% - 65%
Asset Types
Actively grow multi-family and industrial/flex investments
Forge new development alliances to methodically increase allocation of multifamily within our portfolio
Strategic exposure to grocery-anchored and necessity-based neighborhood shopping centers
Limited exposure to suburban Class A and B office buildings and “Power Centers” anchored by Big Box retail
Market Characteristics
Focus on select growth markets in the upper Midwest states that exhibit the strongest economic growth and investment characteristics over time:
Follow the jobs of top renters (young adults and retirees)
Growing Populations indicated by above average employment, job growth and expansion
Rising Household Incomes and history of healthy consumer spending
Diverse economies with jobs spread across industries and employers
Ability to weather challenges and remain an employers’ market
