Investment Strategy and Philosophy
Calare acquires and repositions warehouse, manufacturing, research and flex/office assets in select markets. We identify unique opportunities and execute well-defined business plans, while providing real-time, day-to-day oversight for each investment. Calare targets both income focused assets offering stable cash flow and growth focused assets by uncovering undervalued real estate currently experiencing operational challenges in need of active management through repositioning or re-leasing.
Our team maintains a disciplined approach to its investment philosophy – consistently focused on generating superior, risk-adjusted equity returns and multiples, typically over 3-5 year investment horizons. Calare has succeeded by leveraging its strong reputation and network of deep relationships to uncover market inefficiencies, while simultaneously mitigating risk and limiting the downside of each investment.
Calare’s investment philosophy is guided by five fundamental key factors:
- Extensive Deal Pipeline constantly growing due to Calare’s active acquisitions team and reputation in the marketplace as a “go to” buyer and partner.
- Thorough Underwriting and due diligence conducted by the acquisitions and asset management teams to fully understand each property and market.
- Focused Strategy on product type and geography provides ability to identify and exploit market inefficiencies required to provide superior, risk-adjusted investment returns.
- Direct Investment in individual assets with no complex fund structures and complete transparency.
- Long-Term Relationships generate attractive business opportunities and deal flow – including brokers, sellers, users, tenants and equity and debt partners.
- Investment Size: $10 million to $50 million
- Industry Focus: Distribution, Logistics, Industrial and Technology
- Product Type: Warehouse, Manufacturing, Research, Lab and Flex/Office
- Geographic regions: Primarily Northeastern United States plus select primary and secondary distribution markets
- Acquisition criteria include:
- Quality of micro location
- Barriers to entry and new supply growth
- High quality assets in strong markets
- Uncovering market inefficiencies and out-of-favor opportunities where the firm can and add value through asset management and repositioning.
- Calare executes an acquisition strategy based on a top down approach that leverages our experience and knowledge of many industries and property types.
- Well-located and functional properties experiencing occupancy and/or operational challenges are typically sourced on a “limited-market” or “off-market” basis.
- Calare and investor capital are aligned to execute quickly on identified market inefficiencies and special situations.
- Calare appropriately and efficiently capitalizes investments to mitigate risk, protecting against the asset’s downside, in order to preserve investor capital.
- Outsized risk-adjusted investment returns are created by renovating, re-leasing, and re-positioning properties to grow income and increase exit pricing. This is all accomplished within a typical 3-5 year timeframe on an all-in investment basis significantly below replacement cost.