GenX Capital Partners and their equity fund partners target real estate investment debt and equity partnership opportunities that fall into the broad categories of value add opportunities and event driven/complex situations. We work only with seasoned sponsors who have a solid project backed by a compelling story and business plan that gives the handful of real estate private equity funds we work with the opportunity to create outsized returns with mitigated, reasonable risk attributes. Our “sweet spot” is in the $2MM to $50MM range with project types falling into the 5 core classes of assets along with vertical opportunities that have a solid portion of leasing in place or a well established flag attached. Our floor IRR range is 15-18% (if we are considering Pref Equity) with a targeted IRR on all other participation in the 20%+ range.
For bridge loans we can close in under 30 days with rates from 8-12% and a max LTV of 80%. These rates and LTV are some of the best in the industry. For construction loans we can get as high as 75% LTC.
Value Creation Opportunities. Many projects GenX Capital pursues to underwrite are expected to provide opportunities for immediate term increases in value through aggressive, proactive asset management from the sponsors. These opportunities may involve more focused management on marketing platforms, operating expenses, implementation of capital investment programs to reposition under-utilized assets and/or re-leasing vacant space as well as other initiatives to increase revenue, occupancy if need be, and stabilization. Additionally, in select instances and in certain geographic markets that benefit from strong supply/demand fundamentals, GenX Capital and/or its equity fund relationships may pursue off market, best-in-class development or re-development opportunities with sponsors that provide the potential for high returns with prudent levels of leverage.
Complex/Event Driven Situations. Complex/Event Driven situations often involve multiple aspects of real estate investing and offer attractive risk-adjusted returns due to inefficient pricing and/or event driven circumstances. These investments may include restructuring and/or recapitalizing dysfunctional partnerships, originating highly structured debt or preferred equity positions, or other situations that are unique and therefore difficult to evaluate.