The Praedium Group's investment strategy is centered on pursuing middle-market assets with a total cost of less than $75 million each and focuses on "value enhancement" opportunities. Generally, "value enhancement" properties exhibit one or more of the following characteristics:
- Deterioration of the asset's physical condition; inadequate repairs and maintenance
- Present ownership's failure to aggressively manage the current tenant/leasing base
- Restrictive or insufficient capital structure of the asset
- Current use of the asset is not its highest or best
- Structure of current ownership is no longer optimal
- Deterioration of the asset's position in the marketplace
- Process for selling the asset has broken down or stalled
Frequently, investments made by The Praedium Group are pursued in conjunction with local operating partners who are experts in their respective markets and bring solid market knowledge, strong functional expertise and property level asset management services to the transaction. Once an asset has been identified, Praedium works closely with these local operating partners to structure and execute a value enhancement program that typically includes a combination of capital restructuring, strategic capital improvements, proactive leasing, expense reduction and asset repositioning. Generally, these operating partners also invest side-by-side with The Praedium Group.
Specialists in Complex Deals
Historically, The Praedium Group has readily taken on complex transactions. By drawing on its considerable capital markets knowledge and extensive real estate expertise, Praedium is able to quickly understand and analyze even the most challenging issues and craft innovative investment solutions. The Praedium Group's creative and flexible ownership structures include debt, equity and hybrid investments.
Fast Response
The Praedium Group is adept at evaluating and closing investments on an accelerated time frame to meet the objectives of sellers, partners and lenders. Given its ready access to discretionary capital, The Praedium Group can close transactions with no financing contingency in less than 30 days.
Proven Access to Proprietary Deal Flow
Cultivated by its senior managers since 1991, Praedium benefits from an expansive network of local operating partners and asset managers and is constantly seeking to expand this network. The Praedium Group's access to discretionary capital and historical ability to close with money in hand underscores its credibility in the marketplace.
