We are looking at the following types of real estate deals in select / strong US emerging markets (Seattle corridor included in this):
Older Class B/C existing assets towards end of their life with additional FAR opportunity or large site footprints.
Emerging Sub-market core areas that are expanding – especially surrounding light rail development – potentially also the Sounder train If the property has existing assets in place. Ideal to find with existing decent/good occupancy to cover debt service on equity while redevelopment prepared.
We would look at the following: Raw Sites / Land, existing assets under existing code: Residential (single family attached, condos, multifamily), Office (location dependent), Retail Mixed-Use Industrial – only if it might be able to be converted and is close to a good core area, or a very strong area for industrial redevelopment.
Range of deals we would consider: Raw Land: I would say anywhere upwards of $10M – $15M for raw land sites, potentially a bit higher but that would be stretching. Existing Assets that have good Cap Rate / Returns: I’ve had them looking at sites into the $30M+. But ideally they like to look at things below $20M.
Off-Market Deals preferred Smaller residential projects (below 50 units) in killer / great markets would be considered as well (city infill projects).