Through strong partnerships and deep experience the Sower Capital team in partnership with Access Commercial has the capability to identify, underwrite and execute investment grade development and redevelopment opportunities throughout a variety of markets in the US. Our focus is to create value through the development of projects that are marketable at a significant margin to the actual cost of development. These projects are generally focused on irreplaceable sites in prime trade areas in the markets we target and therefore offer long term intrinsic value to weather any market cycle.
The build-to-suit model provides for risk protection and predictability, and will be implemented with tenants and locations that align with our operating profile. The future utility and rent profile of the asset are considered to protect against downside in the event of a tenant rollover. Most importantly, a build-to-suit opportunity provides long-term ownership in very valuable sites.
SCM has unique relationships with several single-tenant operators that prefer a reverse-build-to-suit model. This model essentially locks in the value at an above market yield and protects the investment from project cost risk. Most importantly, it provides long-term ownership in very valuable sites that will have outstanding 2nd and 3rd generation prospects.
NEW CONSTRUCTION (MULTI-TENANT):
Construction of new projects in markets that can provide a strong commitment from an ideal tenant mix will be considered. This will include projects that have long-term potential for positive rental growth.
ACQUISITION OF DISTRESSED PROPERTIES:
The acquisition of distressed properties will also be considered if there is a tangible opportunity to add significant value. Careful consideration will be made to mitigate development risks when evaluating a redevelopment site’s true potential.
LAND PURCHASE OR ASSEMBLAGE:
If opportunities exist to acquire improved or raw ground that can be utilized for an SCM project in the near term, they will be considered. These purchases will only be considered if the acquisition of excess land allows for a value added opportunity through the land holding period.