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Investment Criteria
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J Alexander believes that value creation with respect to the investor is just as important as the investment in the project itself. We feel that value is not only measured by the returns back to the investors but by the "investment experience" itself.
Having worked with individual & institutional investors for over 17 years the professionals at J Alexander know the amount of commitment that must be made in order to ensure that each investor is constantly up-to-date on the latest information regarding the projects they have invested into.
During the investment process, J Alexander stays in constant contact with the sponsors/developers so that the investor will be provided with timely updates through (1) US Mail (2) email (3) telephone conversations. We feel that the amount of contact should be dictated by the investor so that we are fulfilling their expectation of what a business relationship should be.
Investment Structure:
- Fund - General Partnership - Advantages (1) maintains investment discipline (2) J Alexander realizes a strategic advantage by being able to raise capital ahead of deal flow (3) immediate diversification for investors
- Single-Purpose entities - J Alexander will use this structure only when it is strategically important
- Profit split - Investors will typically receive between 80% - 95% of all cash flow from investments depending on the structure of the investment entity
Return ranges/goals:
- Income producing - 8% - 10% current yield usually paid on quarterly basis with an overall return of 14% - 16% IRR/year upon the sale of the property
- Development - may have a current yield of 8% - 10% during the development process but more often than not the return will be realized (18% - 30% IRR/year) upon the sale of the property
- Re-development - 18% - 30% IRR/year upon the sale of the property
- Path-of-Progress Land Acquisition (development value-add) - 15% - 30% IRR/year upon a sale of the property
Note: The return ranges and percentages mentioned above are for illustrative purposes only and should not be construed as fact.
Exit Strategy:
- Our average "time-to-liquidity (TTL)" is three (3) years. Some projects may last as long as five (5) years - we will only consider these projects if we are able to structure an "exit triggering event" at the end of Year 5 of the project
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