Our Research shows that today’s US CRE investment cycle is in a stage of uncertainty with low yields and slow growth, with risk tilted to the downside in essence a low interest rate stealth bubble.
“In this context Basar Group approach is cautious, given our mandate to preserve and then enhance the value of investors capital”.
There are opportunities to acquire de-leveraged assets in niche urban 24/7 and surrounding sub-markets along northeast corridor. In markets that are transit oriented, education, technology and health care based employment markets. Since we have a private sales trade component we are able to source unique off market properties investments.
We actively work to increase property value through our extensive hands-on management, market timing and use of conversion development strategy. We are value creators, we create value by targeting quality properties in markets that have been neglected and are in need of capital improvements, or that have laid dormant with limited new leasing activity due to obsolete use or under-capitalization, often from distressed owners who are having difficulty servicing debt. We do so because history has taught us that we can generate higher risk-adjusted returns for our investors employing this strategy than buying low cap rate core assets in over leveraged prime markets. Our research shows that these prime markets will face declining transaction volumes over the next years. However, in slowing cycles there are opportunities in middle market assets in 24/7 cities sub markets which are not dependent on foreign investors for frothy returns. Below is a suburban Washington DC middle market office assets that was a part of 6 building portfolio distressed sale that we purchased in 2012 in a joint venture with family office and the value add renovations, with lease up was fully realized in late in 2016 returning 27% percent.
6 Building Portfolio Realized
However yesterday cycles does not guarantee future results. Our investment methodology stems from the extensive economic, credit cycle and market-specific research we conduct, including capital flow, occupancy and absorption trends, new construction, development and property replacement costs. landlord concessions. state and federal regulations, political, demographic and employment trends. We also research and react to specific micro- and macro-economic indices and employ a “contrarian” perspective as we study and interpret the CRE investment cycle and search for creative and innovative investment opportunities.
We have traded over $1.8B that consist of: mixed use urban properties, suburban office; secondary-market CBD office; multifamily urban retail mixed use properties, urban community retail and senior care residences; industrial and research & development properties; multifamily apartments; entitled residential lots, prefab building.We are “internal asset managers and not external assets managers” we do not buy and hold large real estate portfolios just for sake of having a large number of assets under management (AUM). Basar Group was one of the few asset managers who sold most of their portfolio pre 2006 financial crisis and again in 2015 and 2016. Our intense focus is centered on earning high margin, risk-adjusted returns for our investors. If interested in investing we are offering 2 Private Funds: The Ghaf Tree Fund (QOZ) qualified opportunity zone which defers, reduce and eliminates capital gains over 10 year period. Our traditional Value Impact Fund IV which was founded in 2000 through our family office platform.The Basar Group has a strong track record of creating value through renovating, repositioning, and enhancing mix use, office, and logistics real estate investments. With a bold strategic focus that comes from deep-seated experience, we create properties designed to provide strong risk-adjusted returns.