Target Investments
Apartments
Mather Capital has historically concentrated on value added multifamily real estate investments. We believe that the apartment market as an investment vehicle, offers investors greater returns with less risk than other investments. The apartment market is less reliant on business cycles for occupancy and will continue to benefit from positive demographic trends and population growth. The financial markets, through their government sponsored entities ( Fannie Mae and Freddie Mac), ensure the availability of debt financing for apartments in times of economic stress, when debt is unavailable for other real estate assets.
Commercial Investments: Office, Retail & Industrial
Mather's investment strategy is similar to its core apartment business. The goal is to hedge leasing risk by purchasing multi-tenant properties. We target properties that exhibit signs of poor or absentee management.
Investment Rationale:
- Mather looks to acquire commercial and residential real estate at considerable discounts to replacement cost.
- We look to implement value added strategies to realize substantial returns over the intermediate term.
- We implement a disciplined disposition strategy, which identifies an exit strategy before an investment is made.
- Mather focuses on middle market assets that are too large for "friends and family" but too small for the typical institutional equity investor. We seek smaller more entrepreneurial transactions between $2 million and $20 million. We believe that the risk adjusted returns are superior in this middle market segment due to the overabundance of capital held by large institutional investors. As institutional capital chases high profile transactions, there is less competition for middle market assets. With less competition chasing the mid end of the spectrum, acquisition yields tend to be higher in the middle market space. These higher initial yields produce higher risk-adjusted rates of return.
- With institutional players feeding in the largest metropolitan areas of the country with populations of 1,000,000 or more, Mather focuses on those secondary and tertiary markets with strong job formation, in-migration and long term demographics. These smaller markets are more capital constrained, and consequently less competitive allowing for bigger discounts (from replacement costs) and higher initial yields at purchase.
Single Asset Investments
Mather Capital has formed as a variety of entities to invest in specific properties. Mather typically acts in the capacity of Manager of these Limited Liability Partnerships. We have an excellent track record which is a testament to the depth of our real estate skills, capital markets expertise, and investor friendly investment structure.
Opportunity Fund
Mather Capital is launching its first Opportunity Fund to take advantage of the illiquidity in today's markets. The Fund will seek to create value through opportunistic investments unfolding in today's environment. Real estate markets are notoriously cyclical and inefficient. By focusing on this out of favor sector in overlooked markets, the Fund hopes to produce outsize returns in an asset class which is historically protected from inflation.
- Our focus is on investment opportunities involving assets sold by financially distressed or otherwise time pressured sellers.
- We plan to capitalize on market inefficiencies and banks in need of capital adjustment.
- We will target businesses that are financially distressed and seeking to dispose of assets to de-leverage, to re-capitalize or to exit bankruptcy.
The fund will be offered to qualified Accredited Investors to diversify a portion of their assets into managed real estate investments.
