Basis, not projection, creates the margin of safety.
Blackacre acquires distressed and special-situation real estate substantially below replacement cost and converts it to its highest and best use. The margin of safety is established at purchase, not assumed at exit.
Blackacre acquires through a proprietary sourcing and underwriting model developed over years of principal investing.
We do not describe it, license it, or discuss it. The results are visible in the portfolio; the method is not for publication.
Distressed and special-situation real estate, acquired substantially below replacement cost in central locations.
The margin of safety is established at purchase. Basis, not projection, is the discipline.
Conversion to highest and best use, primarily stabilized multifamily and mixed-use.
We return obsolete buildings in enduring locations to productive life.
Long-duration ownership, as principals.
We are owners, not traders. Stabilized assets are held for durable income rather than sold into the next cycle.