Connecting Sound Economics With Experience in Real Estate
Concordia Realty’s investment approach is focused on buying right, adding value, creating superior returns and building wealth by:
- Purchasing distressed or value-add real estate at a discount to replacement cost.
- Concordia Realty Invests in assets with potential to significantly enhance value and cash flow through creative structuring and proactive asset management.
- Repositioning properties to boost occupancy and create long term value.
- Concordia Realty understands that investment property is a hands-on proposition including selective capital improvements, tenant leasing opportunities and correction of operating inefficiencies.
- Buying sound real estate “Good Dirt” with strong fundamentals at a discount from the general market.
- Identify assets with the potential to implement investment strategies which allow multiple upgrade and exit scenarios.
- Timing purchase and sale along with capital improvement to maximize the tax benefits of owning the real estate investment.
- Contrarian investing in smaller markets with higher cap rates and cash flow.
- Savvy real estate investors have an opportunity to acquire strongly performing properties with quality tenants at a discount.
- dentify assets that don’t fit the “box” for traditional investors and capitalize on the market dislocation within secondary markets and midsized properties.
- Smaller markets go against the conventional wisdom of large institutions and foreign purchasers, however these markets could provide an investor with the capitalization rates that are about 800 – 2000 basis points higher than it would be in a gateway city.
- Leverage relationships with our network of real estate brokers and targeted sellers in order to source opportunities not widely marketed.
Traditional real estate investment entities such as pension funds, REITs, investment banks and opportunity funds, must typically deploy large amounts of capital per transaction. Yet, relatively few real estate assets are large enough to meet their criteria. The result is a competitive market which drives down investment returns. The “winners” are the ones with the lowest cost of capital who can pay the highest price in a bidding process.
Concordia Realty’s strategy is designed specifically to avoid competing with larger funds for bigger investment properties. Instead, Concordia Realty invests in small to mid-sized properties which comprise the vast majority of all real estate assets in the United States. There are fewer professional operators to invest in such properties, and the market is inefficient, which allows Concordia Realty to arbitrage mispriced assets.
By leveraging our relationships with property owners, brokers and financial institutions, Concordia Realty is well positioned to acquire “off-market” or less favored properties that can be actively managed and improved in order to generate attractive risk adjusted and highly tax efficient returns.
Concordia Realty’s depth of experience in multiple real estate sectors has also enabled the firm to implement dynamic repositioning strategies that may include change of use for a higher risk adjusted return.