Acquisition Criteria

Acquisition Criteria



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We intend to focus on properties located in the United States, with a primary focus on the eastern United States and on markets where we have an established market presence, or market knowledge and access to potential investments, as well as an ability to efficiently direct property management and leasing operations. Our initial target markets will be growth markets with strong demographic growth, such as employment, household income, and economic diversity.

Additionally, we may pursue properties in other markets demonstrating strong fundamentals and opportunities to acquire properties at prices below replacement cost. Economic and real estate market conditions vary widely within each region and submarket, and we intend to spread our portfolio investments across multiple sub-markets in the eastern United States.
We expect the majority of our investments will typically be more than $20 million; however, we may make investments above or below this amount to complement our portfolio and meet our investment objectives, and we may make investments significantly less than $20 million.

We intend to hold our properties for three to five years, which we believe is the optimal period to enable us to capitalize on the potential for increased income and capital appreciation of properties. For three years following the final closing of our offering, we may reinvest proceeds from the sale of our assets, subject to amounts to be paid to investors for their payment of taxes. Following such time period, we will not reinvest proceeds from the sale of our assets except to the extent necessary to preserve, repair or maintain our existing assets. We expect to sell our assets, sell or merge our company or list our company within three to five years after the final closing of this offering. However, economic and market conditions may influence us to hold our investments for different periods of time.
We may use borrowing proceeds to finance acquisitions of new properties or other real estate-related loans and securities; to originate new loans; to pay for capital improvements, repairs or tenant build-outs to properties; to pay distributions; or to provide working capital. Careful use of debt will help us to achieve our diversification goals because we will have more funds available for investment. Our investment strategy is to utilize primarily secured and possibly unsecured debt to finance our investment portfolio; however, given the current debt market environment, we may elect to forego the use of debt on some of or all our future real estate acquisitions. We may elect to secure financing subsequent to the acquisition date on future real estate properties and initially acquire investments without debt financing. To the extent that we do not finance our properties and other investments, our ability to acquire additional properties and real estate-related investments will be restricted.
We expect to hold real property investments for three to five years after the Final Closing of the offering, which we believe is likely to be the optimal period to enable us to capitalize on the potential for increased income and capital appreciation. The period that we will hold our investments in real estate-related assets will vary depending on the type of asset, interest rates and other factors. We will develop a well-defined exit strategy for each investment we make, initially at the time of acquisition as part of the original business plan for the asset, and thereafter by periodically reviewing each asset to determine the optimal time to sell the asset and generate a strong return. The determination of when a particular investment should be sold or otherwise disposed of will be made after considering relevant factors, including prevailing and projected economic conditions, whether the value of the asset is anticipated to decline substantially, whether we could apply the proceeds from the sale of the asset to make other investments consistent with our investment objectives and whether disposition of the asset would allow us to increase cash flow.
It is our intention to begin the process of achieving a liquidity event not later than five years after the Final Closing of this offering. A "liquidity event" could include a sale of all or substantially all of our assets, or the sale or merger of our company. The General Partner may, in its discretion, extend this period by up to two addition periods of one year each.