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 Sower Capital team in partnership with Access Commercial and other market partners is seeking commercial real estate opportunities that feature the ability to “Add-Value” through strategic repositioning, capital improvements, or lease negotiation. The targeted properties stretch a variety of real estate asset classes with a general focus on acquiring below an adjusted replacement cost and delivering long-lasting value in a finished project.
UNDERSTAND THE ASSET
UNDERSTAND THE MARKET (SHORT AND LONG TERM)
SCM’s goal is to build a portfolio of assets within the funds managed by SCM that will stand the test of time. Having a deep understanding of the market and influencing factors is imperative to the long-term success of the asset. Throughout our market and site selection process, the following key considerations are given to ensure success:
- Employment Trends and Industry Concentrations;
- Demographic patterns & projected 10-20 year changes;
- Stability of Trade Area and likelihood of competition; and
- Municipality Master Planning & Zoning
UNDERSTAND THE ASSET & TENANT
The most important factor driving the success of a real estate asset is the success of the tenant. The SCM team has a unique understanding of this dynamic and takes a very hands-on approach to occupancy success. This starts with a careful analysis of the subject market and tenant demand. Before a project is considered, it is essential to have strong long-term desirability by a wide base of potential tenants. This trait must then be measured throughout the life of the project to ensure the occupancy remains successful and ultimately ensures the successful financial performance of an asset.
COVER THE DOWNSIDE
The primary responsibility of SCM is to protect and defend the assets entrusted while delivering a meaningful return over the life of the fund.A key component of this responsibility is covering the downside risk associated with every transaction. The real estate economy lives in a cycle that can have swings in value and performance. It is our goal to use the following methods to ensure the downside risk is always protected:
- Solid tenants with proven performance;
- Underwrite for averages, not the current market; and
- Use responsible and disciplined leverage that will perform in all environments.
BE MINDFUL OF THE FUTURE
While an asset may perform today, the true test of the sound real estate asset is the performance over the long term. It is the desire of SCM to acquire and manage assets that will be strong candidates for 2nd and 3rd generation development and management. With this as a “top of mind” consideration in all potential projects, the future performance is always our focus.