We recognize that real estate is a localized business, which is why we typically form joint ventures with best in class operators to acquire and manage real estate investments on behalf of the GrayPointe Capital principals, high net worth individuals, family offices and institutions.
Our investment strategy is designed to work in all economic cycles and is not solely dependent on market appreciation. We invest in well-located properties with sound physical and economic fundamentals; properties that have the ability to generate attractive levels of distributable cash, and properties to which we can add value by executing recapitalization or repositioning strategies.
Our investment focus is middle market transactions – properties valued between $5 to $75 million. We believe that capital for transactions of this size is limited, resulting in less competition and higher quality investment opportunities. At the same time, we find greater operating, marketing and selling inefficiencies in middle market transactions which, in turn, provides the opportunity to create value.
We tailor our investment process to each particular opportunity. Typically, after lengthy discussions with sponsors, we will prepare a detailed financial model, structure an investment and enter into an Letter of Intent (LOI). We then prepare an executive summary, distribute to our investors, and begin discussing deal terms. After the transaction structure is agreed upon, we prepare an operating agreement. Our goal is to close and fund every real estate transaction within 90 days of signing the LOI.
Our investors typically seek to invest $1-$10 million in equity per deal, though we embrace larger raises and will consider smaller assignments on a case-by-case basis. Property types include:
- Single and Multi-Family Residential