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Principal Investment Objectives
The Company's primary investment objective is to provide investors with secure, inflation adjusted returns: (i) predictable current income distributions; (ii) income growth; and (iii) capital appreciation.
Investment Strategies
ECM and its Managing Principals have employed a successful strategy for private equity investment in real estate through a number of real estate market valuation cycles. ECM has created significant value for investors in its prior funds by acquiring institutional grade commercial real estate net leased primarily to single tenants with high or investment grade credit ratings. These assets are under long term net leases that are either undervalued or demonstrate strong prospects for value creation.
One Off Acquisitions - ECM acquires assets which are undervalued as a result of their size and lack of institutional focus on an unaggregated basis. Its focus is on off-market middle market transactions with long term leases that can be packaged and sold into the institutional market at a premium.
Corporate and Government Sale Leasebacks - ECM acquires assets from corporations entering into sale leasebacks at a discount to fair market value. Its focus is on off-market, build to suit, and pre-construction assets prior to the transactions entering the broader retail market.
Portfolio Transactions - ECM acquires assets through portfolio transactions at wholesale pricing. Its focus is on off-market private and public corporate transactions on a stand alone basis or in partnership with other investors that can be repackaged and sold at a premium into the broader retail market.
Corporate Recapitalizations - ECM acquires assets from high quality public and private companies. Its focus is on acquisitions that ECM believes have the potential for appreciation as a result of upgrades in the tenant's underlying corporate credit over the term of the investment.
Exit Alternatives
The Managing Principals are highly focused on exit strategies that maximize portfolio value and provide liquidity to their Members. The Managing Principals closely monitor both the public and private real estate markets and maintain a broad network of relationships throughout the industry. The ability to operate effectively within both the public and private market helps assure that the fund will achieve most favorable pricing upon the sale of its assets. ECM exit strategies include but are not limited to:
- Portfolio disposition to another institutional net lease investor through direct sale of assets or merger;
- Individual asset disposition to institutional net lease investors or I.R.C. Section 1031 tax deferred exchange buyers;
- Public offering of Investment assets in a securitized form into the retail investor market;
- Structuring an exchange of Investments for securities in a publicly traded company, such as a Sale of Interests to a Real Estate Investment Trust;
- Conversion of Fund into a Real Estate Investment Trust and a public offering of shares thereto;
- Conversion or roll up into a related ECM sponsored fund.
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Net Lease Real Estate
Company Overview
Investment Objectives