SFA targets undervalued office, multifamily and commercial real estate that exhibit strong supply and demand characteristics.
Our Investment Criteria
Size: Investments between $2 million and $9 million to circumvent institutional demand.
Type: Primarily multifamily, undervalued retail, office and medical opportunities.
Geography: The main focus is the Mid-Atlantic, Southeast and Northeast markets.
Income Profile: Properties that generate stable, in-place cash flow, and offer opportunities to add value at the property level and possess long-term upside potential.
Returns & Strategy: Projected returns will vary depending on each asset’s risk profile and the specific strategy employed. Initial return targets will range from 8-14% (cash on cash) and projected total returns (IRR) will range from 15-30%.
Demographic Fundamentals: Typical investments will be made in areas that provide stable employment, support infrastructure growth and foster population expansio
Advantages of Direct Investing
Real estate continues to be one of the most attractive investments given the general characteristics (i.e. stable cash flow, finite amount of land in designated markets and ability to create an appropriate risk-adjusted levered return).
SFA differs from a private equity fund in that investors have discretion over individual assets, allowing better diversification and leverage control.
“We're doing most of our real-estate investing in direct deals and joint ventures, instead of through private funds, and that gives us a lotmore control over buy-and-sell decisions and leverage. Probably 50% of our real-estate portfolio is held directly.”
– Jane Mendillo, CEO of Harvard Management ($32.7 billion Harvard endowment)*
Direct investments should offer a higher yield and a natural hedge against inflation.
We focus on selecting the right property to tap into its potential and deliver returns that outpace the market. We're selective in the properties we purchase, and are experienced and expert buyers in the closing process. With quick and trouble-free closings, there are no unpleasant surprises. Our due diligence brings strong financial capabilities to the table.
Our business model calls on us to increase the long-term value of your security. We only go into deals when we are convinced of the upside potential. We begin by identifying the right real estate investment opportunities: well-located properties performing under their economic potential.
SFA works directly with owners interested in divesting themselves of properties that meet our acquisition criteria. We know the markets, and understand the value of your property.
Our business strategy relies on increasing the value of any asset we acquire and the reputation of the community you've built will only grow stronger after the sale.