Cantor seeks to maximize the value of real estate by applying its vertically integrated expertise across the investment process: sourcing, acquiring, maximizing value, and monetizing. We share a commitment to sourcing and screening high-quality investment opportunities through our rigorous due diligence process, improving the property through an intensive, “hands-on” approach, and ultimately monetizing the value we have created through an efficient sale process.
We primarily target the purchase of well-located, high-quality distressed commercial real estate assets resulting from an asset being over-leveraged, mismanaged, or under-capitalized. We focus on assets located in secondary markets within the U.S. ranging in price from $2-25 million at significant discounts to replacement cost, prior debt, prior sale, and peak value. By focusing on underserved secondary markets and utilizing an under the institutional radar strategy, we are able to view assets that are relatively lower priced, have limited competition for purchase and have the capability to provide larger current yields and upside than assets located in primary markets.
By investing at discounted prices, we mitigate downside risk, while providing for the opportunity to generate attractive risk-adjusted returns with upside potential through repositioning. We target properties that are already producing solid yields to cover our 6% annual distribution paid out quarterly to investors and provide the opportunity for increased cash flow through proactive asset management for an overall targeted 12%-18% return. Our target holding period for assets is three to five years, depending upon the length of time needed to increase an asset’s value.