• Less sought after properties, which may be in markets where we are targeting high cap rate investments with stable income streams
• Markets with strong fundamentals where we are targeting growth at a reasonable price
• Value enhancement potential through property renovation, leasing repositioning and/or development of adjacent land

Investment Overview:

• “Value-Added” properties
• Strong emphasis on “Risk-Adjusted-Return”
• Total individual property capitalization $15 to $40 Million per property; multi-property portfolios up to $200 Million
• Mid to high teens leveraged returns targeted
• Discount to replacement cost pricing preferred
• Intermediate Hold: 4 – 7 years; convert value-added properties to core, then exit
• Moderate Leverage: 40% - 65% depending on asset
• Focus on quality locations with supply constraints
• Markets: Primary and Secondary; MSA’s greater than 500,000

Investment Structure:

• Acquire on a direct equity basis with third party property management and leasing
• Provide joint-venture equity to owners/developers to facilitate an acquisition or value-added business plan
• Re-Capitalize existing structure investments

Urdang acquisition criteria detail by property type:

MULTI-FAMILY:

• 200 plus units; well located near employment centers and amenities
• Class A minus, B or C (with renovation potential in infill locations)
• Minor or major value-added renovation programs
• Will consider development

OFFICE:

• 75,000 plus square feet
• Suburban and CBD locations
• Will consider entirely vacant buildings or significant renovations
• Roll to market leasing opportunities

RETAIL:

• 100,000 plus square feet
• Prefer food/drug anchored
• Will consider “power centers”, “value-oriented” centers, & regional mall opportunities; properties needing significant renovation or “repositioning”

INDUSTRIAL / FLEX:

• 150,000 plus square feet
• Opportunistic situations
• Will consider entirely vacant buildings
• Conversion to office

HOTELS:

• Will selectively consider full service and limited service properties