Investment Philosophy
Exeter Partners accomplishes
the needs of its clients by thoughtfully assessing market
conditions and establishing investment strategies that seek
to achieve and exceed risk-adjusted return objectives.
At Exeter Partners, we view real estate
as an asset class that is subject to cycles, both in terms
of its underlying supply and demand fundamentals and its
pricing relative to other financial assets.
The firm applies a conservative
approach to each investment, calling on each of its specific
disciplines. The foremost responsibility of the firm is
“Capital Preservation first, Capital Appreciation
second”.
The firm invests primarily
in Core, Value-Added, and Opportunistic/Development real
estate assets in prime locations. It is our inherent knowledge
of how to operate and manage real estate investments across
a diversified range of asset types that provides the foresight
and experience to serve our clients, and to appropriately
manage risk in creating value and executing complex investment
strategies.
In order to expose opportunities we
continuously research our selected markets and carefully
analyze an asset’s competitive position within its
sub-market. In order to pro-actively address potential
challenges and opportunities, we formulate a specialized
operational plan during the underwriting process for each
asset.
Exeter Partners provides a full range
of development services, including site selection, land
planning, governmental approvals, financing, asset management
and property management. We take a hands-on approach to
all our projects, in order to utilize our expertise to
create and deliver development solutions to meet our clients
and customers needs.
Exeter Partners posses the necessary
professional local expertise to successfully develop and
deliver our projects. Utilizing our close relationships
with principals, financial institutions and the real estate
brokerage community we are able to make transactions come
to fruition in very quick time frames. We are currently
targeting developments along major transportation corridors
and infill sites with an emphasis on office projects.
Sourcing
and Screening Deal Flow
Our objective is to be aware of every transaction occurring
in our target markets. We do so by maintaining a wide
base of brokerage, banking and owner contacts in our target
markets, and are often shown transactions before they
are exposed to the open market. We are extremely selective
when evaluating potential assets and sites.
Exeter Partners
screens its opportunities based on the following key criteria:
Location
Accessibility, reputation and convenience of the location
Submarket
Current demand versus supply limitations
Physical Attributes
Quality and condition relative to like assets
Tenancy
Diversity, creditworthiness, and stability of the current
rent roll
Financial Attributes
Risk-return characteristics and the ability to finance
The Value Proposition
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Stabilize level of occupancy, increase
rental rates, and control operating costs. |
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Analyze tenant retention/vacancy assumptions and
evaluate current rental vs. market rates. |
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Evaluate the operating costs, including Controllable
(property taxes and energy costs) and Uncontrollable
(janitorial, landscaping, elevators, etc.) Expenses. |
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Debt Selection of floating vs. fixed rate vs. current
loan assumption. The typical loan to value (LTV) is
60 – 80%. |
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Capital Reserves for leasing costs (tenant improvements
and leasing commissions), deferred maintenance, and
sufficient debt service coverage. |
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Resale - Evaluate current market pricing (sales
price, vacancy, and capitalization rate) to reflect
the true potential for appreciation in a assets value. |
Normally 1 in 10 opportunities
will meet our underwriting criteria
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The market has become highly competitive
– must be careful not to overpay |
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Our reputation for closing transactions gives us
a distinct advantage vs. other buyers |
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We maintain a close relationship with the brokerage
community, while intensifying our efforts to solicit
principal-to-principal opportunities |
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