Rabin Alexander's ( R|A ) investment objective is to achieve superior risk adjusted returns
through opportunistic real estate investments with an annual IRR target exceeding 15%.
Investment Considerations:
• Identification and creation of opportunities
• Minimization of risk through diversification and careful investment structuring
• Balancing current return and capital appreciation
• Intermediate Term two to seven year holding periods, with average holds ranging from 3 to 5 years
• Clearly defined exit strategies for each investment with flexibility to adjust to changing market conditions
Capitalize on Market Dynamics and Inefficiencies – R|A constantly monitors the real estate markets, identifying themes by asset class or geography. By focusing on these themes, R|A has been able to invest ahead of trends.
Favorable Current Cash Returns – R|A targets investments in assets that provide its investors with stable, favorable current cash returns.
Create or Exploit a Competitive Advantage - R|A's reputation, built over many years, combined with its extensive network of relationships, provides R|A with proprietary transaction opportunities and a competitive advantage in many situations.
Conservative Underwriting – R|A pursues a disciplined investment approach identifying attractive opportunities with significant upside potential and controllable downside protection. R|A utilizes rigorous due diligence, conservative assumptions and careful assessment of downside scenarios before acquiring a property.
Prudent Use of Leverage - R|A aggressively manages the capital structure of its investments utilizing prudent leverage, obtaining financing on the best terms available in the market in order to provide transactions with increased downside protection.
Investment Focus - Due to its reputation and extensive network of relationships, R|A is presented with hundreds of opportunities each year. However, it focuses only on deals that fit its strict investment parameters.
Exit Strategies - R|A only commits to investments that offer multiple clear and realistic exit strategies (e.g., through refinancings or sales to private investors, institutions or public REITs). R|A believes that a disciplined approach at the time of investment enables it to better assess exit alternatives as they arise, particularly in changing markets.