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.

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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

  • Employment centers

  • Transit systems

  • New or improved infrastructure

Investment Criteria

  • Minimum $25MM total capitalization

  • 1995 construction and newer

  • 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

  • $46MM average deal size

  • $3MM average renovation budget

  • 2.9 years average hold period

  • 1.85x total equity multiple

  • 24.8% project-level IRR