Our Strategy

HRI believes that we have a generational opportunity to generate wealth by investing in the deeply depressed commercial real estate (CRE) market, specifically the multi-family asset class (i.e. large apartment properties). We firmly believe that by buying right, and managing well, we can generate double digit returns for our investors.

HRI’s Core Strategy is to:

    • Acquire midsize multi-family properties (apartments)
    • Buy foreclosed properties directly from banks (REO) or CMBS trusts
    • Purchase properties at 50% - 75% discounts
    • Execute “All Cash” acquisition with quick close
    • Focus on markets known by the principals and that offer relatively attractive macro economic        characteristics
    • Design and implement a comprehensive asset and property management strategy for each property
    • Stabilize property through active management and by making immediate property enhancements
    • Maximize Net Operating Income (“NOI”) through a combination of revenue growth and expense control
    • Generate Cash Flow for our Investors

HRI employs several Investing & Financing Strategies.

Bridge Financing Strategy

HRI partners with individual investors, and high net worth and institutional partners that are able to provide short-term (3 – 12 months) bridge financing. This investment provides HRI financing to bridge the span from acquisition until refinance. Investors receive a fixed rate of return, and benefit from priority of payment over Equity Partners. Furthermore, investors receive full principle and interest repayment upon completion of the property’s refinance. Please see the “Bridge Notes Program” section on the Your Opportunity page.

Equity Strategies

HRI partners with high net worth investors and institutional partners that are seeking longer term equity investments. These investments could be in a single property or a portfolio tailored for a specific partner. These equity participation opportunities are expected to generate ongoing cash flows and the potential for significant capital appreciation.

The acquisition and management strategies are consistent with the “Core Strategy” (described above). HRI arranges all aspects of the financing strategy. Equity can be provided by a single investor, or a small syndicate. The typical capital requirement will be 25% - 30% of total project cost (“TPC”). HRI obtains senior financing for the remainder of the TPC (e.g. 70% - 75%).