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Are you a high-net-worth investor or Family Office Group in search of compelling direct real estate investment opportunities? Virtus
Real Estate Investments is a fundless real estate financial sponsor
that makes compelling commercial real estate investments that achieve
superior risk-adjusted returns due to our proprietary investment
process and philosophy. In addition, we have greater flexibility than
institutional real estate opportunities, and greater capacity and
expertise than syndicators or ‘friends and family’ investors.
Unlike
traditional real estate investing, Virtus combines a rigorous bottom-up
fundamental analysis with a top-down perspective that emphasizes the
role of major demographic trends in driving demand, specifically:
- The aging and growth of the “Baby Boomer” demographic
- The coming of age of the “Echo Boomer” or millennial generation
- The growth of the Hispanic market in the U.S.
- The transient nature and decreased job tenure of the American worker
Our
philosophy favors investments with strong operating partners focused on
exploiting niches within property types whose demand is driven by one
of these macro trends thus mitigating our sponsor risk, demand risk and
overall systemic risk.
- Partner with best-in-class management team
- Must have a major risk mitigant to protect invested capital
- Increased return requirements commensurate with private equity risk
- Success is NOT dependent on macro economy to be successful
- Deal size between $15 million and $1 billion; median of $37 million
- Strong, experienced operating partners
- Target 25% gross levered IRR to the capital on acquisitions; 35% on ground-up developments
- Any asset class considered, but focused on:
- Medical office
- Assisted living
- Skilled nursing
- Student housing
- Retail in Hispanic-concentrated areas
- Multi-family
- Path of progress self-storage
- Current cash flow
- Pre-sales or pre-leases to cash flow positive on ground-up
- Under market basis from distressed sale
- Multiple exit options
- Immediately accretive event such as up-zoning or new entitlements
- Inducement packages such as tax increment financing, abatements, federal refunds, etc.
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