A Turn-Key Solution for Real Estate Investors

Asset Type

Industrial and Retail

SunCap targets quality multi-tenant retail centers that provide daily necessities and services to the neighboring communities, are resistant to e-commerce erosion, and are resilient to overall market fluctuations.  Tenants typically include health clubs, restaurants, and other product and service providers.

SunCap also targets multi-tenant industrial properties located near urban core markets which provide flexible warehouse and office options to local businesses and contractors.  Such properties are benefitting from the current e-commerce growth and provide diversification for our invested capital.

Property Strategy

“Core” and “Value Add” Assets

SunCap focuses on downside protection by seeking properties that are:

  • Providing a 7+% current yield (requires a minimum 7% purchase cap rate)
  • Priced below replacement cost.
  • Located in submarkets with healthy demographics and market conditions.

This strategy allows us the flexibility to hold assets longer term if necessary to avoid selling during cyclical market dips.

SunCap acquires properties with established existing tenants thereby assuring a stable baseline cash flow.  We then add value over the holding period by inserting our active management and leasing teams, leasing vacant spaces, upgrading the existing tenancy, and executing strategic capital improvements when necessary.

Investment Opportunity

Targeted Returns

  • 8+% current cash yield (paid quarterly during the holding period)
  • IRR** ranging from:
    • 16+% for “Value-Add”, to 12+% for “Core” properties over a 5 – 7 year holding period

**IRR – Internal Rate of Return: annualized compounded return during the investment  period.

Investment Performance

Actual Portfolio Returns

SunCap’s recent investments have returned an average IRR of 20+% (annualized compounded return during the investment period)

SunCap’s current portfolio is providing investors a current cash yield of 8.5% (since inception)

Investor Alignment

Management Participation

SunCap managers personally: 

  • Make a monetary investment in every property.
  • Sign on the acquisition loans.
  • Are actively involved in the day-to-day management from beginning to end.
  • Only receive a promoted share of the profits when the investment returns are achieved.

 

Investors are assured those managing their investment are focused on achieving the highest possible financial returns.