WHY WE FOCUS OBSESSIVELY ON UNLEVERED YIELD

Anyone who knows me knows I prioritize what’s measurable and clear.

That’s why we don’t hard-quote IRR. It’s not that we can’t model it—we can, across multiple scenarios. But IRR is a blunt instrument that masks real risk.

• It ignores risk.
  Market volatility, black swan events, and asset-class differences all get flattened into a single number.

• It rewards timing, not fundamentals.
  Cash flow multiples and recap plays often drive more of the outcome than asset quality.

• It relies on sentiment.
  The single biggest driver of exit values is investor appetite at a specific moment. No one can predict that.

So when managers claim precision around IRR, they’re selling optics, not alignment.

We underwrite with discipline:

• Focus on unlevered yield and generating strong current cash returns.

• Source intrinsic value—assets with built-in upside before improvements.

• Operate as if we’re holding forever, exiting only when timing is favorable and always entertaining unsolicited offers.

• Recapitalize intelligently, returning invested capital post-stabilization when borrowing terms are optimal.

• Minimize risk at every stage, creating asymmetric return potential.

For HNW investors, single family offices, and private groups, this approach makes more sense than chasing modeled IRR.

The real advantage is owning exceptional assets in exceptional markets and compounding over time.

Empirical evidence shows that the median CRE investor return increases with hold length because volatility smooths and uninterrupted compounding outperforms post-tax churn from cycling through commoditized deals.

That’s why we focus on downside first: protecting capital, ensuring cash flow resilience, and structuring for long-term compounding. The upside takes care of itself.

Depending on market dynamics and timing, the yield on invested capital will be highly attractive—often in the double digits, with uncapped upside.

We work with investors who share this conservative view. Those who value simplicity, resilience, and disciplined execution over projections.

Because true alignment doesn’t come from spreadsheets. It comes from structure, philosophy, and results.