strategy & criteria

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VCM targets assets with a total purchase price of $5M-$30M as this is a less competitive space that creates an opportunity for higher risk-adjusted returns. In addition to acting as the lead sponsor VCM will under certain scenarios also invest with other operators as a Co-G.P. or Preferred Equity Investor.

Focus on primary and secondary cities throughout the Southwest and Southeast that have exhibited current positive job growth and are forecasted to continue in the future. Look for markets that have historically exhibited ample debt availability and sales liquidity even in past down cycles.

Pursue primarily deals that have not been broadcast to the greater investment market. Employ multiple strategies by both utilizing the brokerage community as well as tapping into technology, proprietary databases, and loan maturity information to source deals that can be purchased and renovated at a basis below replaced costs where significant value can be created.

Goal is to acquire 75+ unit market-rate properties that are in B or better locations within their respective markets.  An asset must be 1975+, pitched roof, individually metered, and have no known environmental issues. 

Look to acquire multi-tenant shopping centers in infill  locations that exhibit substantial barriers to entry and strong demographics.  Must be a minimum 10,000 SF and even if in need of redevelopment or re-tenanting the location must have numerous demand drivers that would attract both national and regional tenancy.     

Also, will pursue well-located suburban and flex office properties in growing MSAs with strong employment metrics. Property must be a minimum of 20,000 SF and 1990 or newer construction. 

After initial repositioning achieve attractive cash-on-cash returns during holding period and upon disposition yield a projected gross deal-level levered IRR of 13-16%. 

4 -7 years depending on individual business plan for asset.