Equity Placement

Our Approach

Handicapped by low leverage, expensively priced equity will not produce many closed transactions. Real estate equity returns have historically been in the low to mid teens. In today's low interest rate environment, equity investors must re-price their funds to be competitive again.

Dimension raises equity and debt for single and multiple asset joint ventures, opportunity funds, and REITs. We employ our deep familiarity and long term experience at the senior level with equity sources in our database of 400 private and 800 institutional equity sources plus over 250 mortgage lenders. Our relationships include insurance companies, securities firms, commercial banks, and mortgage funds, which allow us to provide all, or select components, of the capital stack on the most attractive terms available in the market.

We tap equity capital from major pension and endowment investment advisors as well as private equity investors. The Dimension principals have raised over $500 million in equity for the development or acquisition of condominiums, hotels, resort hotels, land development, office, multifamily, and shopping centers.
 
Real estate co-mingled funds are very difficult to raise today, so we target a number of separate accounts established as single source joint ventures with the potential for programmatic investing.

Equipped with Dimension's bid-enhancing acquisition technology and unique approach to sourcing assets, our clients can distinguish themselves from their competitors in attracting institutional equity. Investors perceive that our clients can more effectively deploy their capital because of a higher "bid capture ratio."

Finding Affordable Equity Capital in an Expensive Market

It is our view that equity investors have roughly divided into two basic groups. One is dominated by Wall Street private equity funds with a 20-25% targeted yield. These buyers focus on opportunistic real estate or extremely desperate sellers. The other prices equity in the mid to upper teens and seeks core plus and value added opportunities. It is upon this emerging second group that Dimension will focus, and we have developed a strategy to source and attract more modestly priced LP equity.

Handicapped by low leverage, expensively priced equity will not produce many closed transactions. Real estate equity returns have historically been in the low to mid teens. Consequently, we expect equity investors to re-price their funds to be more competitive.

Lower priced LP equity will:

  • Improve an investor's ability to pay a competitive price for the more desirable properties.
  • Help an investor leverage its sponsor equity to a 20-25% yield.

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