Investment Strategy

Valor intends to assemble a $250 million portfolio of income producing assets which can be purchased at attractive current yields with significant equity upside.  Capitalizing on the fall-out of the “crash” of the CMBS market and the resultant banking crisis, Valor will initially focus on commercial properties (office, retail, multi-family, hospitality and industrial) which have been over-leveraged, but still have attractive long term fundamentals. Valor’s extensive underwriting experience in both credit and equity should afford a distinct advantage in evaluating both tenant prospects and local market dynamics. Furthermore, Valor intends to focus on properties that fall below the radar of typical real estate investors (REITs, Funds, Institutions).  General investment criteria include the following:

• Purchase Price: $5 million - $50 million,


• Lender-owned/REO properties, defaulted  loans, FDIC properties,


• Underperforming properties (above market vacancy or down cycle adverse market conditions),


• Non-investment grade single-tenant sale-leaseback properties,


• Current cash yields exceeding 7%,


• Substantial discount to underlying replacement cost or par value,


• Improving tenant credit profiles,


• Strong underlying fundamentals (tenant prospects, market growth, location dynamics).