Real Estate

New York City skyline

We believe that, over the long-term, real estate investment performance is driven by the net cash yield after capital expenditures, and growth in net operating income. While pricing effects from changing cap rates can have a major impact on returns in the short-run, these effects are reduced with longer-term holds. With this in mind, we believe long-term investors should focus their sights on strategies that will deliver long-term cash flow. Historically, this has been achieved by overweighting apartments, investing predominantly in coastal major markets, and focusing on newer vintage assets. We expect these strategies will continue to deliver strong long-term investment performance going forward.

We employ a ‘Buy, Build or Improve to Core’ strategy where the goal of every investment is to own stabilized core properties with strong recurring cash flow, downside protection and upside potential.

INVESTMENT MANDATE

Pacolet’s Real Estate mandate is to create one of the great family owned property portfolios in the U.S. We see it as comprised of very hard to replicate Core holdings that have growing Net Operating Income because of the sub-markets that they are located in and because of skilled active management.


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