Opportunistic and distressed investing is our foundational strategy as real estate investment specialists. Our team consistently finds a wide range of opportunities 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:
- Opportunities for significant capital appreciation, while supplementing returns with current cash flow
- Assets with inadequate capitalization, prior mismanagement/neglect or poor leasing strategies
- Existing buildings requiring renovation and/or repositioning
- Commercial and residential property development or redevelopment
- Access to real estate by acquiring debt and equity interests owned by banks, special servicers or other lenders
- Real estate-related debt, such as whole mortgages, that can be acquired and converted into direct or indirect real property interests
- Market inefficiencies that provide multiple capitalization options
- Performing and non-performing mortgage loans and real estate-related debt securities that are trading at bargain prices due to technical factors caused by market dislocation
- Markets or properties that are “off the beaten path” and/or perceived as being out of favor by other investors
- Capitalizing on sellers’ strategic or financial motivations
- Leveraging relationships with joint venture partners to access deals
- Pricing inefficiencies in complex transactions
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 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.
During this extended period of the late-stage real estate cycle, 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.