Endurance Real Estate Group applies value-oriented investment strategies with the goal of generating above-average, risk-adjusted returns for our equity partners and ourselves. Endurance continually evaluates the market looking for new opportunities to take advantage of inefficiencies in the property and capital markets. Endurance then designs and executes property-specific business plans tailored to the specific opportunities it finds.
Our investment strategy targets both income and value creation opportunities in the industrial property sectors. We target well-located assets with issues we can understand and resolve, such as rolling in-place leases with rents below market, correctable functional obsolescence, and under-managed assets. We look for those investments where we can execute our business plan, address the source of a property’s undervaluation and then realize the value created.
Endurance creates value through asset repositioning, managing tenants in-place, and acting where capital is under-supplied. Our partners gain access to privately-negotiated and off-market transactions, as well as professional property and asset management. We demonstrate our belief in, and commitment to, each investment by way of our significant co-investment in each transaction.
Disciplined Due Diligence
Endurance underwrites each investment rigorously. We work to understand the asset, its market and submarket, the related capital market issues, the competition, as well as the structural, environmental and legal factors affecting the asset. We focus on achieving returns superior to the risk inherent in the transaction. We project the financial returns based on realistic and achievable assumptions. We stress test those assumptions to understand the likely range of returns. We work to identify likely sources of value accretion and then attempt to maximize them during our ownership period.
Real estate underwriting includes extensive location and property-level analysis. This means understanding the demand drivers and likely supply response of the market. At heart, we are value-oriented investors. We study in detail an investment’s rent roll, expenses, and capital requirements.
An important part of our value-creation strategy depends on the exit strategy. We focus on increasing the spectrum of investors who would likely purchase the asset once we have completed our value-added program. We buy institutional quality real estate with issues we can resolve. We then sell to that market, as the institutional market is generally deeper and more liquid.
Active Investment Management
During our holding period, Endurance monitors and implements the value enhancement business plan. This entails highly skilled and detail-oriented leasing, marketing, maintenance, and property management. We target NOI and asset value growth. Endurance regularly evaluates the merits of holding vs. selling. In doing so, we focus on our partners’ goals including their tax situations.