ACQUISITION Criteria
Please contact our acquisitions team for more information.
PROPERTY TYPES
Anything and everything within the Industrial space. Well-located, general purpose, institutional and non-institutional quality real estate including both land and existing buildings.
INVESTMENT TYPES
We are looking for stabilized investments, value-add deals & opportunistic developments (land sites, re-development, brownfield sites, re-positioning, or lease rollover).
INVESTMENT SIZE
Total capitalization in the $5M-$200M range.
RISK & RETURN
We expect the returns we receive to reflect the risks we are taking. We target leveraged IRRs in the low teens to low twenties. We are seeking opportunities with either a high current income or a high back-end residual.
GEOGRAPHY
Mid-Atlantic Region with a primary focus in the Philadelphia MSA, Eastern Pennsylvania, I-81-78 corridor Central and Southern New Jersey, Delaware and Northern Maryland.
ENDURANCE EQUITY
We invest on our own behalf in smaller transactions and look to partner with institutions and HNW individuals on larger deals.
Investment Strategy
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 monitors the market looking for opportunities to take advantage of market inefficiencies and then executes on property-specific business plans to maximize returns.
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.
Additionally, we have developed the expertise to take land through the land development approval process and manage the complications of municipal and state agencies efficiently. 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.