STRATEGY
Overview
We seek off market transactions direct from sellers (where there is little to no competing bidders), indirectly via our affiliate brokerage network, or through outside brokers in some cases. Once a property is identified for purchase, OREP acquires the asset by using a combination of conventional financing, private debt, and private equity.
The core acquisition financing starts with a base layer of lower cost debt that provides financial flexibility in the form of interest-only payment terms, nominal prepayment charges, and earn out provisions for additional advances as net operating income improves. We also make strategic use of private debt (e.g. seller financing or 2nd trust deeds) for capital improvements vs. higher cost equity.
The equity is raised from private investor partners, along with capital from the managing members, and in some cases from exchange proceeds from other OREP partnerships.
Properties are managed by professional and experienced management companies with OREP providing key asset management oversight.
