Investment Process
Ninth Avenue’s investment approach, combining building relationships with leading real estate owners and fund managers along with solid fundamental analysis provides an efficient framework to achieve superior risk adjusted returns.
Ninth Avenue possesses the experience and skills necessary to implement our value-added investment management approach. We utilize a variety of strategies to generate attractive risk-adjusted returns. We believe the key components of our value-added investment management approach are:
Quality Deal Flow – We utilize our extensive industry experience and contacts to develop high-quality real estate investment opportunities that meet our carefully researched investment parameters. We maintain and continually develop new relationships with real estate owners and entrepreneurs nationwide along with operators and local experts to expand our high caliber deal flow and tap into a wide range of transactions that are often not widely marketed.
Strategic Alliances – We believe the intelligent use of skillfully constructed strategic alliances greatly enhances our investment capabilities and efficiency. Judicious use of strategic alliances with real estate entrepreneurs, property managers, property owners and investment advisors allows Ninth Avenue to effectively invest in multiple property types on a national basis utilizing local market expertise and oversight. Utilizing strategic alliances provides for a nimble structure and streamlined organization giving us the ability to quickly recognize and respond to opportunities.
Proactive Asset Management – We take an active approach to asset management, beginning when we identify a potential investment. A detailed due diligence process followed by a comprehensive business plan, including exit strategy, is completed for every investment. As part of this process we conduct on-going hold-sell evaluations based on up-dated market research to refine our disposition strategies. When we sponsor or co-sponsor an investment we make these calls but as limited partner, we are not always in the position to make this decision. In this case we are willing to use our position to influence a sponsor decision. This disciplined process provides a framework to effectively and continually monitor investment performance, allowing us to quickly react to changing market fundamentals.
Risk Management and Due Diligence – Ninth Avenue is committed to protecting its investments. We follow a comprehensive approach to risk management focusing on both market fundamentals and deal specific issues. The foundation of our risk management program is the on-going monitoring of real estate and capital markets. We utilize our market research to anticipate and identify market inflection points that impact investment performance. This information guides both investment and disposition decisions helping to identify potential opportunities and avoid potential risks. Ninth Avenue further enhances risk management by thoroughly underwriting all investments and designing financial structures to align interests among all parties. It visits properties, conducts due diligence and monitors property reports in detail, often scheduling follow up calls or meetings with sponsors after each quarter to augment the information and understanding of property performance.