Regardless of market conditions, WCCP adheres to the same investment principles. Maintaining this approach has kept our track record consistent through various conditions in the real estate cycle. Our approach to creating consistent returns is based on five key factors:
- Commitment. We will not invest in a property without our principals making a significant personal investment.
- Strategy. We focus on investments in growth markets that can be acquired at an attractive cost basis relative to other properties in an asset’s competitive set. We avoid over-valued markets and asset classes. Instead we identify micro-market imbalances and capitalize on local market information. We’re also willing to invest in out-of-favor assets to exploit market dislocations, resulting in attractive risk-adjusted returns.
- Due Diligence. We’ve been investing in our selected markets for many years and engage in thorough, exhaustive due diligence. We use the relationships we’ve established with vendors in our primary markets to gain a comprehensive understanding of a building’s physical and mechanical components during the due diligence phase of every investment. Our own experience and long-standing relationships with brokers in the markets where we’re most active give us market insight and understanding beyond surface-level statistics and trends.
- Capital & Leverage. We take a disciplined approach to an investment’s capital requirements and the application of leverage, utilizing conservative amounts of leverage and patient equity capital with extended investment horizons. Our evaluations focus on long-term capital appreciation, internal rates of return, and whole dollar profit as opposed to current cash flow.
- Experience. With our experience and backgrounds in workouts and restructuring, we understand the challenges of investing in distressed assets. From restructuring debt obligations and renegotiating leases to foreclosing on borrowers and changing property use to fit market demand, we know how to reposition, restructure and recapitalize properties to maximize investment potential.