Recognizing and Responding Quickly to Capital Flow Cycles
A sound investment strategy must recognize the importance of these cycles and requires a commitment to maintain pricing discipline when buying and willingness and an ability to move quickly to sell when the value enhancement program has been completed and the capital markets are fully valuing asset and market fundamentals. Some prime commercial property can now be acquired at very substantial discounts to cost. At this time, the United States is the most dynamic market for distressed debt investment in the world and PRIME US REAL ESTATE EQUITY FUND intends to fully take advantage of this window of investment opportunity.
Utlizing Debt
Appropriately
PRIME US REAL ESTATE EQUITY FUND believes that leverage should be employed at a level that provides a meaningful enhancement to investment returns but not be so high that a fundamentally sound asset will be put at risk during periods when leasing markets soften or capital markets become constrained as they are at this time. Our average leverage will not exceed 66.66% of appraised value. Our fund will do a new appraisal every 12 months on all properties.
Mitigating Risk through Asset Quality and Tenant Serice
In commercial office buildings, risk comes in basically two forms: rental rate risk and vacancy risk, with the greatest investment risk coming from the substantial costs that are incurred through vacancy. We believe that both of these risks are best mitigated by investing in high quality properties that, due to their location, physical quality, amenities and other attributes, will always be preferred business locations. These risks are then further mitigated by operating these properties with an unwavering focus on responsive and cost-effective service to tenants so that opportunities to expand and retain tenants on the most favorable terms are maximized.
Company Overview
PRIME US REAL ESTATE EQUITY FUND management is one of the country’s oldest and most respected real estate organizations active nationally in the ownership and operation of high-quality commercial properties. Due to their success over many years and multiple real estate cycles, PRIME US REAL ESTATE EQUITY FUND management has established their reputation as creative and knowledgeable investors. The company is privately owned and is headquartered in Dallas, Texas USA.
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