Investment Strategy and Overiew

The Partnership will primarily target value-added opportunities in single family, multifamily and office properties generally located within the Pittsburgh Pennsylvania area. The General Partner has identified sub-markets within the target market that it expects to outperform the broader metropolitan areas and will take a proactive approach to sourcing opportunities in these sub-markets.  The Partnership intends to primarily acquire boutique class A- and B and better properties that range in size from sub $1 million to $10 million. 

The General Partner believe that assets in this size range have superior return potential with active management but tend to be overlooked and under-managed by large, institutional owners. The investment team is looking to acquire smaller assets from real estate investment trusts (“REITs”), insurance companies and larger private equity funds, whose focus is on the performance of their larger investments. The General Partner believes its advantage comes from the team’s ability to identify, acquire below market, and then expertly manage these smaller properties, employing a platform and the processes of a larger, more established institution. The General Partner will focus on transactions where its team can add value through repositioning or redevelopment. The Partnership may acquire assets directly or through joint venture partnerships, but the investment team has a proven ability to drive the asset management process regardless of the transaction structure. The General Partner’s asset management team will be engaged in investment opportunities early in the due diligence process and will collaborate with the acquisitions professionals to create a business plan for that asset prior to issuing a letter of intent for purchase. Post-acquisition, asset business plans will be executed under the supervision of the asset management team, utilizing top-tier property managers and service providers in the target market. The progress of each asset will be continually monitored against its original business plan and market conditions to allow the manager to optimize the timing and manner in which the partnership realizes investments. 

The Partnership’s strategy is underpinned by the General Partner’s dedication to risk management, which stems from the Principals’ investment background and alignment of interest with Limited Partners. Risk management begins at the sourcing level, where the manager maintains a disciplined approach to asset pricing. A stress test model will be built for each potential acquisition that stresses cash flows, interest rates and capitalization rates. We believe this approach will drive asset selection that is focused on core-plus risk, with acquisition prices and asset management plans that seek value added returns. 

The Partnership’s investment strategy plans to primarily target value-added opportunities in multifamily and office properties located within its target markets. target market selection is the starting point of the strategy, whereby the investment team analyzes demand drivers such as job growth, population growth and forecasted growth rates in each of its targets markets compared to the national average. It then further defines geographic investment boundaries within each target market by analyzing growth characteristics and long-term potential of each sub-market within the metropolitan area. The General Partner has identified sub-markets within the target markets that it expects to outperform the broader metropolitan areas and will take a proactive approach to sourcing opportunities in these sub-markets.