Our Approach
Investment Strategy
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.
Program
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.
Select submarkets
Investment Catalysts
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Employment centers
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Transit systems
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New or improved infrastructure
Investment Criteria
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Minimum $25MM total capitalization
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1995 construction and newer
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Garden and high-density including mixed-use
Process
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.
Underwriting
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.
Execution
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.
Results
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$46MM average deal size
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$3MM average renovation budget
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2.9 years average hold period
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1.85x total equity multiple
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24.8% project-level IRR