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OUR PHILOSOPHY
Objective
Accordia Realty Ventures (“Accordia”) was formed in the Spring of 2005 to facilitate the acquisition, development, asset management and disposition of real
property investments in the New York/New Jersey/Pennsylvania region. Through the effective use of debt financing, Accordia will seek to maximize returns to
the equity position.
Investment Strategy
Accordia’s investment strategy revolves around the notion of “calculated risk” and in direct correlation, risk tolerance. Accordia focuses on three levels of risk-
adjusted investments:
Development/Redevelopment
The highest risk property type- Development or redevelopment projects may entail land acquisition, land entitlement, building construction and/or renovation,
and lease up or sale. Due to its sometimes speculative nature and higher equity requirements, this type of investment generally yields the greatest returns but
also necessitates the greatest tolerance to risk.
Opportunity/Growth
Value-added properties that provide upside potential in terms of both rental rate and property valuation increases, without taking a high risk approach that
would leave equity positions with unacceptable exposure. Potential for value creation is achieved by the identification, acquisition and repositioning of under
performing properties through smart cost effective management and an aggressive mark to market leasing strategy.
Core/Core Plus
Core and Core Plus assets are identified for their long term stability and sustainable cash flow. There is generally less risk associated with this product type
usually due to manageable lease expirations and low maintenance terms. Therefore the projected equity returns associated with this investment strategy often
reflect the amount of risk taken on any particular investment or series of investments.
Investment Product
The company has the ability to be active in various product types including:
• Multi-family residential
• Retail strip centers
• Suburban Office
• Mixed Use
• Land – Major or Minor Subdivisions
Regardless of the property use, acquisitions that fit the investment criteria as outlined above are evaluated. The bottom line is economic viability - does the
transaction make economic sense?
Investment Size
The ideal investment size may range from $5,000,000 - $25,000,000. Development opportunities may often be outside of this range.
Project Capitalization
Debt Financing
Accordia attempts to maximize returns to the equity position through the effective use of debt financing. The purchase price, closing costs and working capital
costs are generally capitalized using maximum (but cautious) leverage. Loan proceeds weigh heavily on finance decisions and overall deal structure.
Equity
Equity contributions finance the gap between the all-in costs of the acquisition and the debt proceeds. Projected equity requirements range from 15-40% of
the total project capitalization depending upon the asset type. Anticipated capital calls are outlined as inherent in the transaction before closing if necessary.
Return Hurdles
Current cash on cash returns are projected to range from 8% - 14% depending upon where in the investment cycle the property may be, and what property
type is purchased. For example, lower returns may occur while the property is maturing to stabilization., or core assets may produce lower yields risk adjusted
for lower volatility.
Accordia seeks to generate overall returns over the life of a particular investment in the 15%-22% range, appropriately adjusted for risk tolerance.
Geographic Parameters
New Jersey: Northern/Central/Western New Jersey
New York: Rockland County/Orange County/Westchester County
Pennsylvania: Eastern Pennsylvania
Accordia Transaction Services
Deal Origination
As the representative for the equity interests, Accordia researches and pursue
transactions that fit into the Investment Strategies. Through advertising,
networking, presentations and personal meetings, Accordia creates a presence
in the local real estate community that facilitates the company’s short and long
term acquisition goals.
Acquisition Negotiations
Accordia actively negotiates the parameters of each transaction with the seller via a Purchase & Sale Agreement. Items that are typically addressed include
but are not be limited to the purchase price, deposit, scope of due diligence including third party reports, sellers representations and warranties, etc.
Development Management
Accordia identifies potential land or existing buildings in need of redevelopment. The company negotiates the purchase of the property, entitles the land with
the appropriate approvals, designs the use, and creates value through land sale or development of the property.
Financing Negotiations
Upon execution of the Purchase & Sale Agreement, Accordia secures through a competitive bid process, debt financing for the transaction. Accordia
negotiates loan terms including loan structure, interest rate, term, escrow provisions (if required), and other borrower obligations.
Asset Management
Accordia is responsible for all asset management and fiduciary duties associated with each transaction. In remaining consistent with the investment strategy and
Operating Agreement, Accordia seeks to maximize the value of the asset through strategic decision making and constant monitoring of property performance.
Disposition/Refinance
Upon value maximization, Accordia (pursuant to the Operating Agreement and the voting rights granted therein) seeks to monetize the equity interests via a
sale, joint venture or refinancing of the existing debt. In the event of a sale, Accordia selects the selling broker, evaluates competing bids, and negotiates and
closes the transaction. If the exit strategy includes refinancing the property, Accordia negotiates and closes the loan and distributes proceeds in accordance
with the Operating Agreement.
Objective
Accordia Realty Ventures (“Accordia”) was formed in the Spring of 2005 to facilitate the acquisition, development, asset management and disposition of real
property investments in the New York/New Jersey/Pennsylvania region. Through the effective use of debt financing, Accordia will seek to maximize returns to
the equity position.
Investment Strategy
Accordia’s investment strategy revolves around the notion of “calculated risk” and in direct correlation, risk tolerance. Accordia focuses on three levels of risk-
adjusted investments:
Development/Redevelopment
The highest risk property type- Development or redevelopment projects may entail land acquisition, land entitlement, building construction and/or renovation,
and lease up or sale. Due to its sometimes speculative nature and higher equity requirements, this type of investment generally yields the greatest returns but
also necessitates the greatest tolerance to risk.
Opportunity/Growth
Value-added properties that provide upside potential in terms of both rental rate and property valuation increases, without taking a high risk approach that
would leave equity positions with unacceptable exposure. Potential for value creation is achieved by the identification, acquisition and repositioning of under
performing properties through smart cost effective management and an aggressive mark to market leasing strategy.
Core/Core Plus
Core and Core Plus assets are identified for their long term stability and sustainable cash flow. There is generally less risk associated with this product type
usually due to manageable lease expirations and low maintenance terms. Therefore the projected equity returns associated with this investment strategy often
reflect the amount of risk taken on any particular investment or series of investments.
Investment Product
The company has the ability to be active in various product types including:
• Multi-family residential
• Retail strip centers
• Suburban Office
• Mixed Use
• Land – Major or Minor Subdivisions
Regardless of the property use, acquisitions that fit the investment criteria as outlined above are evaluated. The bottom line is economic viability - does the
transaction make economic sense?
Investment Size
The ideal investment size may range from $5,000,000 - $25,000,000. Development opportunities may often be outside of this range.
Project Capitalization
Debt Financing
Accordia attempts to maximize returns to the equity position through the effective use of debt financing. The purchase price, closing costs and working capital
costs are generally capitalized using maximum (but cautious) leverage. Loan proceeds weigh heavily on finance decisions and overall deal structure.
Equity
Equity contributions finance the gap between the all-in costs of the acquisition and the debt proceeds. Projected equity requirements range from 15-40% of
the total project capitalization depending upon the asset type. Anticipated capital calls are outlined as inherent in the transaction before closing if necessary.
Return Hurdles
Current cash on cash returns are projected to range from 8% - 14% depending upon where in the investment cycle the property may be, and what property
type is purchased. For example, lower returns may occur while the property is maturing to stabilization., or core assets may produce lower yields risk adjusted
for lower volatility.
Accordia seeks to generate overall returns over the life of a particular investment in the 15%-22% range, appropriately adjusted for risk tolerance.
Geographic Parameters
New Jersey: Northern/Central/Western New Jersey
New York: Rockland County/Orange County/Westchester County
Pennsylvania: Eastern Pennsylvania
Accordia Transaction Services
Deal Origination
As the representative for the equity interests, Accordia researches and pursue
transactions that fit into the Investment Strategies. Through advertising,
networking, presentations and personal meetings, Accordia creates a presence
in the local real estate community that facilitates the company’s short and long
term acquisition goals.
Acquisition Negotiations
Accordia actively negotiates the parameters of each transaction with the seller via a Purchase & Sale Agreement. Items that are typically addressed include
but are not be limited to the purchase price, deposit, scope of due diligence including third party reports, sellers representations and warranties, etc.
Development Management
Accordia identifies potential land or existing buildings in need of redevelopment. The company negotiates the purchase of the property, entitles the land with
the appropriate approvals, designs the use, and creates value through land sale or development of the property.
Financing Negotiations
Upon execution of the Purchase & Sale Agreement, Accordia secures through a competitive bid process, debt financing for the transaction. Accordia
negotiates loan terms including loan structure, interest rate, term, escrow provisions (if required), and other borrower obligations.
Asset Management
Accordia is responsible for all asset management and fiduciary duties associated with each transaction. In remaining consistent with the investment strategy and
Operating Agreement, Accordia seeks to maximize the value of the asset through strategic decision making and constant monitoring of property performance.
Disposition/Refinance
Upon value maximization, Accordia (pursuant to the Operating Agreement and the voting rights granted therein) seeks to monetize the equity interests via a
sale, joint venture or refinancing of the existing debt. In the event of a sale, Accordia selects the selling broker, evaluates competing bids, and negotiates and
closes the transaction. If the exit strategy includes refinancing the property, Accordia negotiates and closes the loan and distributes proceeds in accordance
with the Operating Agreement.
| To contact us: 366 Harvey Court Wyckoff, NJ 07481 Phone: (201) 961-3119 Fax: (201) 891-6809 |
Used with permission of HLW Architecture
