Investment Strategy
Overview:
The current economic environment creates an ideal opportunity for experienced investors with proper strategies. Our company acquires properties both on its own account and in partnership with private equity investment firms and high net-worth private investors.
We take a conservative approach to manage and minimize risk to the capital of Illumina Investments Group and our partners.
Our expertise allows us to recognize mispriced assets as well as identify assets with a value-add component.
The managing partners seek to increase property values through rezoning and repositioning to maximize rental occupancy and rental income; reconstructing the capital stack; redevelopment; acquiring sites with excess land to allow for additional density; anticipating the increase in the value of an asset that is in the path of development or transportation activities; recognizing properties with unexploited profit centers such as signage or parking revenue; adding leasable area; incorporating additional product types, and improving building management.
We focus on acquiring well-located assets in vibrant communities with a diversity of employment through re-leasing and redevelopment with our team of property managers, leasing managers, and contractors.
Research and Methodology
We target the following situations for increased value creation:
• Underperforming Properties –
Properties that have significant vacancy, below market rents, significant tenant turnover, deferred maintenance, or a dated physical appearance.
• Undercapitalized Assets –
Properties suffering poor performance related to the inability of an owner to source the capital required to attract and retain tenants, to provide proper maintenance and property improvement, or to service the property’s debt.
• Distressed and Motivated Sellers –
Special circumstances for our team to problem-solve and provide win-win solutions to owners who must liquidate or recapitalize due to strategic or stress-related events, such as a liquidity crisis, loan default, bankruptcy, litigation, et al.
• Out of Favor Markets and Property Types –
We sometimes take a contrarian view towards investment by investing in properties and markets that are, for a variety of reasons, currently out of favor with or unrecognized by the majority of investors, but have great potential due to various factors. This allows us to acquire assets at a much higher CAP rate and the ability to create high value.