Meeting Our Client’s Short, Intermediate
and Long-Term Goals
The purpose of including real estate as part of an overall investment strategy is to provide an inflation hedge and a real rate of return that correlates with stock and bond market returns with the objective of reducing the volatility of the total portfolio. In order to devise comprehensive investment strategies for our institutional and high net-worth clients, we thoroughly engage our clients in an exhaustive process with the purpose of understanding the client’s short, intermediate and long-term real estate investment goals and objectives.
In addition to understanding the client’s real estate investment goals and objectives, and as part of the investment criteria applicable to all clients, MayfieldGentry focuses on the following:
- Acquiring properties that are expected to provide yields in excess of the client’s cost of capital and which can benefit from the principles of our expertise in the management and operation of commercial real estate.
- Acquiring a diverse portfolio of properties at purchase prices less than the cost of new construction.
- Acquiring properties that provide attractive initial yields and possess significant cash flow and appreciation growth potential.
- Actively monitoring real estate market conditions in order to make informed hold versus sell decisions.
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“Hands on" Management of Investment Strategy
and Implementation
Whether it is devising and implementing a comprehensive investment strategy for a client with no exposure to real estate or performing a specific acquisition assignment for a client that has established real estate investment guidelines, we manage the entire real estate investment process by implementing a well-reasoned, top-down comprehensive strategy to identify markets with the greatest potential for growth.
The final decision to proceed with an investment opportunity depends largely on the property’s potential for cash flow and appreciation. As a result, we adhere to a very deliberate and systematic approach relative to the analysis of the market factors that influence real estate performance. Closely monitoring the market factors that impact real estate performance is essential in determining how a client’s portfolio will be diversified by property type and geographic location.
Impact of Market Factors on Investment Performance |
PROPERTY TYPE |
MARKET FACTOR |
MARKET IMPACT |
| Retail |
Economic Growth, Population Growth, and Household Income |
new and expanding stores and businesses |
| Office |
Service Sector, White Collar and Economic Growth |
new and expanding businesses |
| Industrial |
Economic Growth, Increased Industrial Outputs, Inventories, and Distribution |
needs New plants, warehouse and light industrial facilities |
| Residential |
Population and Income Growth, Demographics, Housing Prices, Household Formations, Public Sector Incentives and Interest Rates |
new and expanding multi and single family housing |
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