Targeted Returns
With respect to existing properties, NMS will seek to achieve net return on equity, by asset class, as follows:
Core Plus – 7%-9% current return on equity from cash flow and loan principal amortization, with internal rates of return of 12%-14%.
Value Added – 9%-12% current return on equity from cash flow and loan principal amortization, with internal rates of return of 14%-18%.
Opportunistic – Current return on equity will vary, with internal rates of return of 18%-22% (and above).
With respect to real estate development projects, NMS seeks to achieve net current returns on equity (upon stabilization) of 10%+, with internal rates of return above 20%.
Geographic Focus
Primary and secondary U.S. markets with emphasis on the south and southeastern U.S. NMS typically targets properties located in cities where NMS or its partners have an existing market presence (and such other new regions as determined by the Principals), and/or emphasizing locations as characterized by favorable demographics (above average median income and educational attainment, above average job and population growth, and natural and cultural amenities, including strong school systems and other living amenities).
Asset Classes
- Office
- Retail
- Multi-Family Housing
- Warehouse/Industrial
- Student Housing
- Self-Storage
Investment Criteria
New Market Strategies (NMS) provides equity, either alone or with joint venture partners, for the acquisition, development, repositioning and/or recapitalization of real estate properties in most major asset classes. NMS is actively seeking opportunities meeting the following general investment criteria:
Investment Hold Period
NMS develops an investment strategy or thesis for each targeted acquisition. Based on this analysis, a projected investment hold period is determined, typically ranging between three and ten years.
Transaction Size
- Direct investments up to $25 million;
- Co-investments up to $200 million