Acquisitions Strategy and Criteria
- RTA is committed to execution of a Core Plus investment strategy based on the acquisition of high quality assets, meeting the functional needs of today’s tenants, in performing markets, with strong locational attributes. We invest in two classes of assets: 1) those that have the potential to be Core quality, but require leasing or other improvements to allow them to be classified as such; 2) stabilized properties of Class‐B or higher quality. Investments will be acquired and capitalized in a way that will achieve Core Plus returns.
- RTA will continue to invest in office, retail and industrial product, with a focus on those product types experiencing superior performance in each of the identified markets. The primary markets will be those with performance metrics well above national averages that have demonstrated movement from recovery to expansion modes, and in the top submarkets within each of these markets.
- RTA has a long history of delivering the highest level of partnership and management services to its investors through active ownership. The properties will be leased, after a diligent interview process, by the most qualified team within each market and proactively managed, executing on activities that maximize the properties’ income and returns.
- Following property acquisition, RTA’s focus will be on cash flow, leasing, and capital preservation first and foremost, with additional priority given to value creation opportunities. It is anticipated that the properties will be monetized in four to five years, or sooner if an opportune market presents itself.
- Total capitalization of each investment will range from $15 – 40 million. We anticipate acquiring three to four Core Plus assets annually.
- RTA plans to finance the properties at acquisition or soon thereafter with favorable mortgage terms. The net cash flows from the properties (subject to reasonable reserves at the project level) will be distributed to the investor partners on a monthly basis.
- We act as principle investors only and do not participate in any investment brokerage fee.
- We value third party brokers and in many situations pay a fee to brokers who bring “off-market” opportunities.
- We use third party leasing brokers for all our properties.