Opportunistic & Distressed Real Estate Investing

“Our team seeks situations in which investments can be made
at an attractive cost basis and where value can be increased through intensive operational 
and financial management. We have strong relationships across the real estate industry 
that provide Westport with excellent and exclusive access to off-market transaction flow.”

— Sean Armstrong
Principal & Portfolio Manager

Opportunistic and distressed investing is our foundational strategy as real estate investment specialists. Our team actively looks for (and consistently has found) many different types of situations in which to deploy capital on behalf of investors across changing economic environments and evolving market cycles. Situations and strategies with potential for strong value enhancement include:

Westport’s investment team typically focuses on privately negotiated transactions rather than competitive auctions – generally avoiding stable, trophy-type assets where it is less likely to achieve return targets without employing high amounts of leverage and incurring excessive risk. We believe that this approach lends itself to more advantageous pricing, flexible structuring and better investment returns.

Our global investment experience and team expertise spans every major real estate asset class, including office, retail, industrial, entertainment and leisure-related properties, multi-family and single-family housing, senior housing properties and hotels. We perform independent analyses rather than rely only on third party assessments or due diligence. In real property investments, our team emphasizes proactive management and repositioning of assets, strategic capital investments and tenant improvements, and tenacious execution of leasing and operational plans to increase revenues and minimize expenses. We apply the same approach to our financial asset investments, performing as much asset-level underwriting as possible, while taking into account company-specific and market factors. In distressed situations, we seek to be as senior as possible in the capital structure and to exert significant influence throughout the workout process.

In the current environment, we are focusing on smaller or mid-sized investments, ranging from $10 million to $50 million (although some deals can be outside this range) – more predominately in equity vs. debt. Individual assets in non-major markets are also a focus — where we expect to be better capitalized than other buyers of similarly sized properties, mainly local entrepreneurs, and to provide sellers with greater certainty of closing.

We concentrate on generating returns based on our skills and experience as active real estate managers, not just through financial engineering. This “roll up the shirtsleeves” approach is key to turning around acquired assets and enhancing/realizing value.