Cyrus invests in wholly-owned real estate, or through joint venture partnerships. We typically operate in the value-add, opportunistic, distressed, and core-plus spaces. We strongly believe in the tenets of traditional value investing, and as such have applied these principles to our own real estate investment strategy. We invest in the highest quality real estate assets, at the best prices, with the soundest financial structures.
Based on the principles of value investing, below we have highlighted some of our main strategies:
WE CAREFULLY ANALYZE EACH ACQUISITION, USING COMMON SENSE AND THOUGHTFUL ASSUMPTIONS IN WHICH TO BASE OUR INVESTMENT ANALYSIS.
Although we embrace sophisticated models and have built and developed our own proprietary models for analysis, we strongly believe real estate investing is an art, and less so a science.
CYRUS UNDERSTANDS THAT IT IS NECESSARY TO INVEST IN RELATIVELY BARGAIN-PRICED REAL ESTATE ASSETS THAT PROVIDE US WITH A “MARGIN OF SAFETY” TO ACCOUNT FOR ANY NUMBER OF CIRCUMSTANCES.
Given this, we seek out the highest quality assets within each target real estate space.
THERE ARE MULTIPLE ARBITRAGE OPPORTUNITIES PRESENT IN TODAY’S MARKET.
We look for and consider these opportunities based on factors such as proprietary metrics, lease considerations and geographic location. In the core space we also consider the arbitrage opportunities realized in the difference between a lease guarantor’s bond rating on their corporate debt and the capitalized value of their operating leases. We evaluate real estate positioning relative to competition, construction quality, and demographics.
WE BELIEVE IN THE IRRATIONALITY OF MARKETS.
By focusing on the intrinsic value of an asset we believe we can capitalize on market distortions caused by this irrationality.
WE ARE RISK AVERSE.
As value investors we weigh the benefits of any perceived gain by the cost of the potential equivalent loss. Given this, we believe that due to the current economic climate and our unique skill set in this space, our efforts are best suited to focus on the acquisition of core, distressed and value-add real estate assets.
WE BELIEVE MARKETS CAN BE UNPREDICTABLE.
We feel our strategy is the best real estate investment approach to mitigate the unpredictability of markets.
WE DO NOT BELIEVE TAKING HIGH LEVELS OF RISK IS A PREREQUISITE FOR INCREASED RETURNS.
We do, in fact, believe in the alternative, that sustaining high compounded rates of growth can only be achieved by avoiding significant loss.
In the case of a value-add opportunity, we pursue deals in which we can implement solutions to operational issues, re-tenant the property, perform physical improvements or re-engineer the capital structure.
We invest in raw land, developments, or specialized property sectors in the opportunistic space.
In the distressed space, we focus on the acquisition of distressed real estate, or real estate backed assets. Utilizing our unique sourcing capabilities and ability to work with local partners if needed, our team seeks opportunities in which real estate debt can be purchased at a significant discount to its replacement and collateral value by identifying attractively priced mortgage debt investments that are generally senior in the capital structure.
Our interest in the core-plus space focuses on primarily owning and managing single-tenant commercial real estate properties, with medium to long-term leases, to high credit quality tenants. We predominantly source for acquisition directly from developers and owners, as well as from our extensive network of commercial real estate brokers.