Our investment insights are anchored on real estate asset fundamentals and are greatly enhanced by the team’s operational and development focus. The Company’s investment approach is based on five core principles, “five Edges” that we look for in every one of our investments.
Infinity Real Estate’s principals are value investors, creative developers, and hands on real estate operators.
Built-In Discount: The Value Edge.
- We look for discounted asset pricing relative to asset replacement value and development costs.
- We look for clearly identifiable, and immediately executable, value creation opportunities, in order to further increase the gap between our cost basis and the asset’s replacement value.
- We gear our repositioning towards creating stable income to maximize an asset’s ultimate market value potential relative to our total cost basis.
Intrinsic Real Estate Quality: The Asset Edge.
- Once the “value edge” has been established, we focus on real estate level fundamentals.
- We determine the strength of an asset’s intrinsic real estate quality by assessing (i) the construction quality of the structure, building systems and envelope, (ii) the building design, facility layout, functionality, and sightlines, and (iii) the site access, and location.
- This intrinsic asset quality is essential to the reinvention process we undertake when we acquire a property experiencing stress. It materially impacts the asset’s ultimate desirability and competitiveness in the market, for tenants and investors alike.
- By focusing on this type of property, we ensure strong institutional appeal and deep exit markets for our assets.
Aligned Strategic Partners: The Partnership Edge
- We look for capital partners and lenders with the investment experience, people, and platform to match our business culture, execution discipline, and flexibility to act decisively when unique opportunities arise.
- We seek to achieve alignment of interest between Infinity Real Estate’s principals and its partners, in order to establish a fluid framework for repeat partnerships over multiple transactions, allowing principals to focus on investment value.
- We look for operating control of all ventured investments from acquisition to exit stage, in order to protect the realization of asset value creation strategies. However, we insist that governance and major decisions control be fully shared with large capital partners.
Deep Exit Market(s): The Liquidity Edge.
- We look to own assets with deep and clearly identified resale/exit markets (strategic industry buyers, institutional private equity buyers, public market investors, high net worth individuals, regional and local property owners, etc).
- We design value added execution plans tailored to each exit strategy alternative.
- We look to eliminate or minimize any asset-level encumbrances to maximize resale value.
- We closely monitor market cycle trends and shifts in capital market pricing, in order to adjust exit strategies for maximum value creation.
High Barriers to Entry: The Market Edge.
- We seek to invest in cities and submarkets with high barriers to new supply of property product.
- We believe that markets with high density, lack of development sites, high land cost, restrictions on land use, and stringent regulatory environment, offer the safest environments for real estate investment performance and the strongest context for long term value creation.
- We also invest selectively in secondary markets that present unique growth dynamics and where we can gain a Market Edge through cluster strategies with several properties.