FM Capital has a value investing philosophy that is used with all of our investments. Our investment strategy focuses on generating investor profit by purchasing mispriced assets at depressed values with clear disposition optionality. First, we acquire the asset at a price that is below the assets’ true market value. Second, we turn-around and stabilize the asset. Third, we implement a disposition strategy that maximizes investor returns. This strategy is used for our equity and debt investments.
FM Capital actively invests equity in income producing properties located across the country. These properties are in areas with strong demographics, healthy labor markets, sturdy economic fundamentals, and that are experiencing increasing economic growth. FM Capital predominantly focus on value add and opportunistic investments. We acquire the property, engage our long-standing property management equity partner to manage the property and maximize profit, and dispose of the property at an appropriate time.
FM Capital purchases non-performing, sub-performing, and performing loans that are secured by income producing commercial real estate throughout the country. This includes debt on multifamily, retail, office, industrial, and other property asset classes. The debt is acquired from commercial, retail, and investment banks; lenders; and other investors looking to deleverage and solidify their positions.
Below are some of the standard acquisition criteria FM Capital uses when considering an investment. While we have established acquisition criteria, FM Capital is always open to investment opportunities where we have a competitive advantage and where the risk falls below our risk threshold.
For Equity Investments, the acquisition criteria includes:
- Transaction sizes ranging between $5 million to $500 million.
- Properties in primary and secondary markets.
- Assets that are distressed, real estate owned, and/or value-add.
- Properties that are generally occupied and yield immediate income.
- Either single properties or portfolios with multiple properties.
- Purchase assets throughout the entire country.
For Debt Investments, the acquisition criteria includes:
- Transaction sizes ranging between $1 million to $50 million.
- Properties that are in primary and secondary markets.
- Debt that is distressed, real estate owned, maturity defaulted, non-performing, performing or sub-performing.
- Debt that is secured by performing assets.
- Either single notes or portfolios with multiple notes.
- Purchase debt throughout the entire country.