Prudent investment strategies focus on risk mitigation and downside protection (i.e. capital preservation). Channing’s real estate investing approach will incorporate three strategies that are intended to maintain appropriate targeted returns while decreasing risk.
Asset Class Diversification
- Multi-family apartments
- Multi-tenant office
- Multi-tenant retail (dominant grocery/ drug store anchored)
- Nursing homes
- Strategically significant single-tenant retail / office / industrial
Geographic Diversification
- Focus on the mid-western markets of Cleveland, Columbus, Detroit, Pittsburgh and their surrounding area
- Additional MSA attributes to include, but not be limited to, population increases, state capitals, major universities, convenient flights, multiple public company headquarters, large hospital systems, military bases, professional sports teams, and other
Conservative Leverage
- Higher projected returns are not worth the risk of increased leverage
- Avoid financial risk that can be caused by unforeseen operational issues
- Assess unlevered returns and then appropriately employ leverage – avoid chasing higher equity yields through financial engineering