Do You Take a Boots to the Ground Investment Approach?

Investing in commercial real estate takes more than 1 market and some quantitative due diligence. That’s why our acquisition team is spread over eight thriving US markets. It’s critical to have associates with first-hand knowledge of each city’s commercial real estate market and its offerings. Our “boots on the ground” approach bring us well-researched, well-priced investment opportunities, even in sellers’ markets.

An example is our latest acquisition, The Fletcher Southlands. This is a well-located and family friendly apartment community in the Southeast submarket of Denver. Tom Briney, who has been with us more than six years, guided the execution of this off-market acquisition at a price below the fair market value of the asset. Tom moved to Denver to head our office there and to directly participate in the local commercial real estate community. Knowing the territory and developing relationships are essential to finding investment opportunities. The City of Denver was recently named one of the nation’s most promising cities for real estate investment by Forbes and the Urban Land Institute. As part of the Colorado Front Range Trail, it’s a magnet for Denver’s young professional workers. As an amenity, it’s a selling point for managers who know the Denver market.

The previous owners of the Fletcher Southland's were investors focused on extracting cashflow from the property instead of re-investing the necessary capital back into the property to force property appreciation. This investment shows two things. First, our direct involvement in the local real estate community helps us identify well-located properties that we think we can improve through better management, new capital or better marketing. Second, our local knowledge helps us make disciplined decisions, getting strategic benefits from our investors’ private funding.

We’ve grown very familiar with Denver over the last six years. Denver’s population has risen nearly 14 percent since 2010 and its momentum is building. Its young professional workforce is attracted to Denver’s natural beauty and vibrant downtown. The high-quality labor force attracts new business, which upends the traditional relationship between business and population growth.

Markets like Austin and Dallas in Texas, Atlanta, and Charlotte and Raleigh in North Carolina are as much lifestyle destinations as employment centers. With boots on the ground where we invest, we understand not only the opportunities in these markets, but also the risks and capital needs of our assets. Ultimately, it makes us successful in our plans to maximize their value to our investors.