Real Estate Equity Investment Policy

  • Diversification
    The portfolio will seek to diversify by property type, investment size, and geographic location.
  • Leasing Risk
    The strategy will focus on those properties that have a degree of preleasing in place. However, given certain conditions, such as a constrained supply exceeded by demand, the manager may pursue limited speculative developments. Investment projects include build-to-suits, expansions of existing leased properties, and, possibly, speculative developments within permitted property types.
  • Investment Structures
    Investments will generally be structured either as joint ventures with experienced developers or as outright property acquisitions. Ownership is generally structured as a single asset, limited liability company (LLC), or a corporate entity.
  • Leverage
    From time to time, debt financing may be used as part of any real estate equity investment. Leverage is generally limited to 65% debt-to-value per project and 40% debt-to-value of portfolio at time debt is obtained.
  • Buy/Sell Decision
    The general underwriting philosophy of the strategy is to buy, develop, and hold properties over a real estate cycle of ten years. Properties will be reviewed at least annually to determine whether they continue to meet performance expectations and whether the markets in which they operate have changed. Properties may be sold if their performance exceeds or fails to meet expectations, if acquisition assumptions on market environments have changed, and/or if the portfolio requires liquidity or needs substantial rebalancing.
JL tower under cnstruction, Anchorage, AK