Value Investing & Mixed Use Redevelopment from the Front lines

RSS Babak Ziai

  • How Collaboration with Neighbors can save Retail Brick and Mortar February 25, 2021
    Normally in commercial real estate districts, especially in high street retail, there are multiple owners on a street competing for tenants. Covid has stripped down our competitive nature, at least temporarily, and opened a dialogue about how we can help each other get to the other side of the recovery. Reaching out to your neighbors […]
    admin
  • Protecting Investors as Steward of Capital February 22, 2021
    As an emerging investment manager going into Q1 2020, we were in the process of building and scaling our assets under management or “AUM” with our next investment. This was a very unique event-driven opportunity where we had the opportunity to pre-lease a large vacant building to a blue chip office tenant in conjunction with […]
    admin
  • COVID has Accelerated the Rationalization of Space Use February 18, 2021
    The pandemic has triggered a broad rationalization of how space is used for each property type. This is going to be a slow iterative process, not a quick solution. However, there are trends and ways to create flexibility within spaces to service this process of rationalization. Since Amazon purchased Whole Foods in 2017, retail has […]
    admin
  • Resetting Landlord-Tenant Dynamics to Lease Commercial Space during COVID February 15, 2021
    Landlords and prospective office and retail tenants are advised to explore ways to reset and help each other grow over the next 1-2 year recovery. This will involve both parties to become “experimentation partners” to determine what works and what doesn’t work, toward achieving a stabilized rent payment stream. Here are three ways landlords can […]
    admin
  • Our Approach to Investing in Dislocation Opportunities (Part 3) February 10, 2021
    Event-Driven Distressed & Special Situations: We sometimes find opportunities driven by events that enable us to see more value and/or factor other discounts into the price of a property. This can happen when a seller or its lender needs to sell a property quickly at a market-clearing price due to extenuating circumstances such as financial […]
    admin
  • Our Approach to Investing in Dislocation Opportunities (Part 2) February 8, 2021
    Alongside Market Dislocations, another form of dislocation we like to invest in are Property Dislocations. This is when we can identify risk mis-pricing or uncover hidden value at the property level that is not apparent to the market, competing buyers and the seller. We also look for dislocations by unlocking embedded value through repositioning, repurposing […]
    admin
  • Our Approach to Investing in Dislocation Opportunities February 5, 2021
    We focus on small to medium-sized value-add multifamily and commercial mixed-use projects between $2-30 million dollars through our Fund I and syndication vehicles. Market Dislocations – We look for mispricing of risk in opportunities across (i) regional markets in Southern CA and (ii) property types and (iii) neighborhood micro-markets. This is amplified by focusing on […]
    admin
  • Finding Higher Risk-Adjusted Returns: Why We Invest in Dislocations February 4, 2021
    Our investment strategy is focused on capitalizing “dislocation” opportunities. What are they? Market dislocations are circumstances in which markets, operating under stressful conditions, cease to price assets correctly on an absolute and relative basis. Translated, this means assets perceived to be “higher risk” are priced lower because both equity investors and mortgage lenders require higher […]
    admin
  • Our Value Investment Pro forma Approach January 20, 2021
    The Yield-on-Total Cost approach factors in all of the feasibility, cost and risk that need to be considered on a project where you’re looking to add value. This is based on a simple formula: Total Yield or Annual Net Operating Income (=Rent-Vacancy-Operating Expenses) Divided by Total Project Cost (=Purchase Price+ Carry Cost during vacancy + […]
    admin
  • Pro forma Valuation Approaches January 11, 2021
    To go back to our first principles, we’ve got three components: time value money, opportunity cost and risk. Those are all in our desired discount rate of return which is then applied to the series of cash flows which reflects the design, permitting the cost: the debt and the equity. In order to evaluate what […]
    admin
TOP });