Real Estate - Strategy & Deal Parameters

PNP Capital Advisors LLC

Strategy Overview

 

PNP Capital Advisors is focused upon deploying capital to take advantage of pricing dislocations occurring in commercial real estate markets throughout the United States and the Eurozone.  The founders have a proven history of sourcing and executing similar real estate deals which have produced extraordinary returns when compared to traditional investment vehicles.

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  • PNP is targeting underperforming, undermanaged, and mispriced real estate opportunities which are sourced through its network of established partners and contacts.
  • ​PNP seeks to optimize the risk-reward dynamic by employing:

             1)  A conservative capital structure for each deal;    

             2)  Focusing on deal size ranges and geographic markets that offer superior returns; and

             3)  Value-added functions appropriate for each opportunity.

  • ​​Investors will benefit from a seasoned management group and investment platform that has been actively investing successfully in the target industry for years. 


Deal Parameters


In determining whether a real estate investment meets the criteria for PNP Capital Advisors and its investors, PNP Capital Advisors carefully considers the following factors:


  • ​Cash Flow - Focus on assets that 1) have current cash flow; or 2) will create cash flow through value-added process within 18 months.
  • ​Product Type - Broad mix of core property types and opportunities to unlock value.
  • Value-add opportunities, including leasing, re-zoning and entitlements, mixed-use elements, and project re-positioning, where value can be prudently added.
  • Deal Size – Competitive “sweet spot” between $5 - $40 million.
  • Geographic Targets - United States, United Kingdom & Eurozone.
  • Pricing Inefficiencies:

          - Bank owned property distressed due to excessive leverage;
          - Quality assets with distressed property owners;
          - Well-located property with a history of chronic mismanagement;
          - Poor tenant mix and below market rent rolls; and
​          - Property requiring expertise in repositioning to increase occupancy and achieve stabilization.