Investment Strategy

Heritage's Real Estate Investments employs a two -pronged investment approach:

  • Acquire core assets with stable cash flow with modest growth potential, and
  • Acquire value added investments with the potential for significant rewards while limiting risk upon refinancing or sale.

 

Core Investments

For conservative investors seeking portfolio diversification and high yields through real estate without undue levels of risk, Heritage recommends the acquisition of existing multi-family residential, student and mixed-use properties. On behalf of our investors, Heritage will seek to acquire well-located, fully leased properties with a view to developing portfolios that are diversified by location throughout the U.S. Heritage intends to provide investors with current cash flow and the opportunity for capital appreciation through sound real estate investing.

Our objective is to provide strong returns and continuing growth in capital values. We will maintain low risk thresholds, and portfolio volatility will be minimized. These core assets will be acquired at discounts to replacement values, taking full advantage of current market displacement, distressed sales and the lack of liquidity.

 

Opportunistic Investments

Heritage will also include more entrepreneurial investments, as our primary investment strategy will be the pursuit of value-add opportunities. The types of properties that Heritage will seek include: rental apartments, student housing, age-restricted housing, fractured condominium and townhome communities, and existing properties in which rehabilitation, releasing, repositioning and/or professionalized management would add significant value. Some of these investments may be in the form of distressed debt, tenants-in-common (TIC) interests and potential condominium conversions.

Our goal is to improve and reposition these apartment communities and sell them upon completion to the investment community within a five- to seven-year period. We believe that Management’s excellent track record coupled with our ability to make a real estate investment more liquid will be very appealing to investors.

The Investment Process

Heritage will identify assets that are underutilized, have operational inefficiencies or have below-market rents.

  • assess the opportunity through rigorous due diligence, forecasting, and evaluation of all possible scenarios. capitalize with the most advantageous debt/equity structuring available
  • capitalize with the most advantageous debt/equity structuring available
  • enhance the property's value with intensive post-acquisition management, leasing, marketing, or redevelopment using our vertically integrated team.
  • monetize investments in a timely and opportunistic manner after an asset reaches its full value potential.

 

Investment Parameters

Below replacement cost. (We cannot build it for the prices we are paying)

  • High barriers to entry. (It is difficult to get into the market and there is limited competition.)
  • Maximization of rents through capital improvement plans. (We will modernize the Properties to justify higher rents.)
  • Increase cash flow through operational savings and efficiencies. (Our Property Managers will implement cost controls, staff reductions and better purchasing.)
  • Focus on properties with financing capabilities, current and future. (We will only buy properties that are financeable.)

 

Principals

  • Jeffrey Greenberg
    Principal
    Oversees all disciplines involved in the acquisition, financing and leasing of Heritage’s properties.
    jeff@heritagecapitalgroup.net
  • Steven Greenberg
    Principal
    Supervises every aspect of leasing, construction & property management for Heritage’s holdings.
    steve@heritagecapitalgroup.net