Generally, real estate investments can be categorized into one of three investment styles: core, value-add and opportunistic. Hat Creek Partners seeks out only value-add investment opportunities because we believe they provide the best opportunity to achieve our total return targets while accepting an appropriate level of risk.
Hat Creek Partners adheres to a disciplined, fact-based investment approach and targets only those assets that meet our definition of a true value-add opportunity in select submarkets.
Value add defined
Identifying value-add opportunities means finding properties with a deficiency that is both identifiable and correctable - through management, renovation and/or recapitalization.
New or improved infrastructure
Minimum $25MM total capitalization
1995 construction and newer
Garden and high-density including mixed-use
The value-add process includes identifying properties that are underperforming relative to their competition and executing a value-add strategy according to an asset-specific business plan.
The opportunity for each investment is defined through an iterative process establishing the feasibility of an asset moving from a weak competitive position to a strong one.
Real estate is not a passive investment class. Rather than delegating certain aspects of managing our investments, we take a very active, hands-on approach during each phase of the value creation process.
$46MM average deal size
$3MM average renovation budget
2.9 years average hold period
1.85x total equity multiple
24.8% project-level IRR