Austin, Texas Commercial Real Estate Private Equity Fund Management

 

The Dynamics

Traditional finance theory suggests that investors seek the highest return for the least amount of risk. In today's environment, uncertainty has moved investor's desire towards safer havens for investments; consequently the focus is on current cash yields and wealth preservation. Economic uncertainty has seen the steady erosion of corporate earnings, which has raised the risk of public stocks and lowered the returns of corporate bonds. Worldwide economic uncertainty, combined with finicky markets and rapid advancements in technology have created an environment where blue chip stocks no longer provide the solid stable returns of the past, and the volatility of growth stocks today has dramatically diminished investor interest.

High quality corporate bonds and U.S. Treasury securities provide an acceptable measure of risk, but at all time low returns. The state of the US economy and the current real estate market environment create enticing returns for investments that meet the objectives of a long-term equity real estate fund. A high quality real estate portfolio provides geographic (location), credit (tenant) and product (property type) diversification while providing strong returns. Property types proposed in this Fund are basic, high demand products that appeal to a very broad range of consumer and business needs. The expanse and diversification of this base affords stability over a long-term period. This stability when combined with the current interest rate environment generates leveraged, risk-adjusted returns, which are superior to alternative investments.

The objective of collecting newer, higher quality properties insures a reduced long-term obsolescence and the highest "integrity" (quality) of cash flow. Strong returns with moderate, balanced risk produces a highly compelling argument for this real estate investment Fund.