Investment Philosophy & Criteria

GRE is continually evaluating investment opportunities in the markets where we are active. With more than 35 years of real estate investment experience, GRE has developed and maintains strong relationships with developers, owners, brokers, bankers and management firms. As a result, many of the properties submitted to us are never subject to the traditional and potentially costly bidding process. GRE also leverages its network to gain insight into market trends that can influence leasing, investor demand and potential legislative initiatives impacting land use, taxation or incentives.

GREs investment philosophy ensures that acquisitions are only made when market conditions and prudent investment practices align. Our guiding principles for each investment are as follows:

  • Acquisition, generally at less than replacement cost, of premier, well-occupied properties with superior location, design and construction. 

  • Focus on unleveraged evaluation with equal reliance on historical/current income and projected cash flow.

  • Leverage best in class management and operational platforms through joint ventures or other financial structures focused on ensuring an alignment of interests. Retain the majority interest and control over the management and long-term direction of the property. 

  • Careful consideration of forecasts and research focused on both product type and regional and market cycles.

  • Identify downside risks through uncompromising underwriting and adherence to strict fundamental analysis. 

  • Conservative use of leverage as an adjunct but never a driver of investment decisions. 

Acquisitions Criteria

Generally, deal size will fall with the range of $2.0 to $20 million. Summary property specific criteria that will be used to evaluate opportunities will include the following:

Industrial

Multi-tenant office warehouse assets with good layouts, locations and desirable physical characteristics that will ensure long-term functionality and competitiveness.
Focus on location, access, visibility, on-site circulation, building depths, level of office finish and ceiling heights. Seeking opportunity to add value through vacant lease-up, near term lease exposure and market driven repositioning

Office

Focus on functional assets that are well located in their submarkets and can be acquired well below replacement cost. Submarkets should have positive net absorption and prospects for improving rental rates.
Buildings with design features, materials and finishes that are functional, cost effective and aesthetically competitive in the local market. Assets should present value-add opportunities through leasing, proactive management and strategic capital investments.

Retail

Suburban assets located in affluent trade areas with established tenancy, below market rents, verifiable sales and health ratios (i.e. occupancy costs/sales) of less than 10%.
Infill locations with residential density, consistent foot traffic and verifiable sales and health ratios.

Apartments

Older well located and functional communities where moderate capital and more intensive management can boost income.
Properties will be of at least average quality for the market, but may be suffering from inadequate management, maintenance or repair. Repositioning will enable the property to compete effectively with Class B or better product within the market.