Overview

EREP employs a disciplined value-add investment methodology that seeks to maximize risk-adjusted returns on across most major property types, including office, multifamily, hospitality, industrial, retail, mixed use, and land.  More specifically, the core principles of EREP’s investment methodology are:

  • Purchasing assets “off-market” and at deep discounts to replacement cost
  • Concentration on small-to-medium sized assets in supply-constrained markets
  • Prudent and disciplined use of leverage
  • Portfolio aggregation / disaggregation designed to provide diversification by geographic footprint, property type, tenant credit-worthiness and economic segment
  • Exploiting market inefficiencies and/or information asymmetries
  • Multiple exit strategies formulated at the time of acquisition

EREP translates the firm’s investment methodology into superior risk-adjusted returns by employing an intensive active management approach, which features hands-on execution of property-level business plans developed in the acquisition diligence period.  These business plans are designed to quickly convert value-add opportunities into increased property-level cash flows through one or all of the following as applicable:

  • Resetting entry bases to improve debt coverage ratios and drive occupancy rates
  • Capitalizing on significantly discounted entry bases to drive occupancy
  • Strategic capital improvement
  • Addressing deferred maintenance
  • Improved financial controls
  • Improved operating efficiencies obtained through scale
  • Financial engineering and improved tax efficiencies