STRATEGY

Investment Structures and Criteria

Our approach to real estate investments is centered around underwriting investments based on fee ownership of any given asset. We seek to participate in high quality real estate defined by good architecture and design. Our long-term history and hyper-local management expertise enable us to identify opportunities, out forth appropriate structures to mitigate inherent risks, and execute transactions to meet our clients’ short- and long-term investment goals.

Caerus Group brings depth of understanding and expertise to all engagements and provides its partners, clients and investors direct exposure to physical underlying assets.

Strategies

Caerus Group executes direct investment strategies with risk profiles along the entire risk/return continuum. We engage along three primary risk/return alternatives:

Core Strategy: Designed to provide investments in low-risk, high-quality “stabilized” properties, diversified by property type and location.
Value-added Strategy: Designed to provide investments in a less efficient and higher-returning segment of the market. In these strategies, we seek to add value by implementing changes to physical, operational or financial structures. Modest leverage is typically employed in these types of strategies.
Opportunistic Strategy: Designed to provide investments with high-return and high-risk profiles. These investments are highly leveraged and may include acquisition of distressed assets, ground-up development opportunities or debt issuance.

Themes

Conversion and Use Change	Ground-Up Development	Capital Constraints
Caerus identifies and executed projects that allow for substantial reward upon conversion from one asset class to another.	Caerus developed ground up commercial, residential and mixed-use projects in supply constrained markets.	Caerus identifies and implements market update and cost-effective property improvements that allows repositioning of an under-utilized, under-managed asset into a dynamic, performing asset.

Branding & Marketing Opportunities	Distressed Assets	Redevelopment Opportunities
Caerus looks for properties in need of a facelift and remarketing effort with a goal of accelerated exit or maximizing return potential.	Caerus is well positioned to take over a distressed asset or buy out an ownership under duress due to partnership disagreement, construction, timing or funding issues.	Caerus seeks opportunities that require substantial changes, redesign and marketing positioning to add value and deliver attractive returns.

Corporate Divestitures	Government Hurdles	Financial Structuring and Funding
At times, discretion and certainty of closure take precedent to pure economic considerations. Caerus works with corporate sellers as a trusted advisor.	Caerus is able to recover value and execute projects requiring substantial interaction with government and public, complex zoning reviews and public procedures, which have resulted in mis-pricing or stagnation of a project.	Caerus can structure complex transactions with multiple parties, where a high degree of discretion and financial sophistication in investment structuring is required in order to meet a seller’s needs.

De-leveraging Overcapitalized Assets	Mis-managed Assets	Recapitalizations
Caerus is able to identify overleveraged assets tand particiate in transaction through direct equity or debt acquisition.	Caerus can capitalize on situations where existing assets are used to drain out a property’s value through deliberate overleverage or mismanagement.	Caerus actively engages through investments in partnerships, where property owners require fresh capital or seek to monetize their equity and participate in property’s future upside.

Investment Structures, Criteria