At Valhalla, we recognize that superior risk-adjusted returns can be found in numerous environments and throughout every real estate cycle. Accordingly, the Valhalla real estate group does not hold to arbitrary investment criteria and is interested in every type of real property and use (from multifamily, industrial/warehouse buildings, commercial office, retail centers, land, development projects, mobile home parks, marinas and everything in between). Our goal is to apply rigorous bottom-up and top-down analysis, proactive project and asset management, coupled with practical legal and financial structures to capture profits from viable market transactions. Our paramount concern is preserving capital while maximizing returns and minimizing risk. To achieve consistent, superior results, Valhalla emphasizes the following principles:

 

- Value Orientation. Target real estate transactions where value remains to be created and the basic fundamental principles for success are present. Our emphasis is geared toward harvesting tangible value embedded in a variety of business plan-driven and arbitrage strategies.

 

- Maximize Assets. Our main objective is to acquire products that are real estate investments with the potential for value-added income and gain through a combination of improved property management, thoughtful physical improvements, and prudent capital structuring. We take the time necessary to search out such opportunities on a nationwide basis, develop a repositioning plan, and execute that plan effectively, efficiently and expeditiously. Our key assets are our people and the diligence that they place in evaluating every real estate transaction. Through our many successes and lessons learned, we have developed a vast knowledge base to rely upon in underwriting transactions.

 

- Maximize Price Parity and Liquidity. We strategically price investments based upon historical data and prevailing trends, and resist aggressive and fragile assumptions about projected performance and macro-economic events. Furthermore, we seek to structure our transactions with flexible prepayment rights on senior financing to facilitate the efficient trade of an asset at its highest peak value. This trader mentality optimizes market value parity, enhances liquidity, and allows Valhalla to cycle capital more quickly and minimize any exposure to negative market volatility.

 

- Finding Value in Complex Deals. We recognize that there are opportunities to acquire real estate assets which are under-valued due to the complexity or illiquidity of the existing ownership or capital structure. There can be a commensurate reward for unlocking this value. In such situations, Valhalla seeks to actively work through the complexities, gain control of the asset, and prepare such asset for sale, without the inherent risks of bankruptcy, fragmented ownership, or property-level issues.

 

- Capitalize on Illiquid Assets. Valhalla's management possess a wide range of real estate investment and management expertise, that when combined with financial and corporate skills, capitalizes on the situation of unwilling owners in illiquid structures. Valhalla seeks:

 

                 (i) passive opportunities in which the interests of an entity can be acquired at a significant discount to the underlying                             net asset value with the knowledge that the underlying assets are approaching their loan’s due dates; and

 

                 (ii) owners of assets or holders of interests who seek to sell in an illiquid market.

 

- Seek Value Enrichment Opportunities. Valhalla’s investment strategy is concentrated on pursuing “value enrichment” real estate assets opportunities. We seek to acquire or joint venture with others to fix “broken” or undervalued properties that can be sold upon stabilization. We interact on a principal to principal basis with sellers, where you are dealing with key decision makers and investment committee members. We are active participants in opportunities throughout the United States and Canada that exhibit the following characteristics:Partial Construction:

 

• Owner’s failure to complete construction or rehabilitation. Partially completed projects, properties needing major and/or minor rehabilitation;

• Property and Asset Management: Failure to aggressive mange the current tenant/leasing base or other instances where professional management is required

• Capital: Restrictive or insufficient capital structure of the Asset or the controlling entity including bankruptcy and foreclosure.

• Adaptive reuse potential: Current use of the property is not its “Highest and best use”

• Ownership disputes: Structure of current ownership is no longer working due to management or

• Partnership dispute, death, divorce, or other extenuating circumstances;

• Deterioration of the assets

• Exit strategy needed: Current buyer back out of the transaction or partnership needs to be recapitalized

• Change of use required

 

- Special Expertise in Environmental Properties. We understand real estate that pose environmental challenges from the lender, developer and user points of view. We have the ability to acquire, solve those problems and ultimately redevelop these properties. Our experience and knowledge of Brownfield legislation, environmental characterization and cleanup give us a firm foundation to acquire these assets. The partners are experts in areas regarding indemnity and liability remediation issues.