STRATEGY: INTRODUCTION

Commercial Real Estate investment in private syndications can have large performance swings from sponsor to sponsor.  This is because CRE is a dynamic investment and heavily dependent upon the analytical capabilities of the sponsor during asset selection and management execution during the ownership phase.  HHCP is a proven leader in both. 

Capital Preservation and Capital Growth and are of the utmost priority to us and our investors.  Every investor wants high returns, but high returns do not exist in a vacuum.  Typically higher returns are coupled with greater risk of capital.  However, sometimes this relationship of risk vs. reward is skewed toward the risk.  We balance these priorities by evaluating the risk adjusted returns of every investment using a detailed financial model that weights future worst case, most likely, and optimistic scenarios to determine expected returns, variance, standard deviation, and risk adjusted return ratios. Only after our minimum yield criteria are matched with the appropriate risk adjusted return ratio do we continue with a project. 

The old adage “you make your money on the purchase” is certainly true.  However, this only happens after a detailed feasibility review including: Market & Competitive analysis, Site & Location analysis, Legal & Political analysis, and with the inputs gathered, Financial Analysis.  This is an iterative process culminating in a go / no go decision on every transaction.