The Principals believe that real estate should represent a meaningful component of an investor’s portfolio, providing diversification to other more traditional investment classes. Over the past twenty years, direct investment in real estate assets has generally demonstrated a negative or low correlation for all periods to public equities. Therefore, diversification should be a primary consideration for adding and maintaining an investment allocation to real estate. Moreover, in most cases real estate can be considered similar to fixed income assets, providing regular, reasonably consistent stream of income while offering certain tax benefits and the potential of an equity return through positive capital appreciation that is realized upon liquidation.

While the current real estate market has weaknesses in certain segments, the Principals believe there are and will be increasing opportunities for investment in real estate offering attractive returns on a nominal and risk-adjusted basis. The long-term experience of seasoned real estate investors who have in-depth market knowledge and operating capabilities are essential to identify, to secure and to capitalize on these opportunities. The Principals have been working together investing, developing and managing real estate assets for their own account and on behalf of investors and clients for over 20 years throughout many real estate cycles and across several geographic markets and property classes. This accumulated experience provides critical insights to help identify investment opportunities, essential fundamental skills to operate, structure, lease and reposition assets, and knowledge and access to maximize investor returns in this competitive market environment.

The Fund will focus primarily on markets in which the Principals have a significant market presence and property types in which the Principals have strong experience and operating knowledge, thereby offering the advantages of market leverage and operating efficiencies and reducing the risk of unknown factors. The Fund will target the Dallas/Fort Worth metropolitan area and other markets in the state of Texas and Southwest region that offer an established and broad business base and infrastructure, growing small companies and a diversified community and workforce and other growing sub-markets. Notwithstanding the foregoing, the Fund will not limit itself to these geographic regions, as investment opportunities may exist in other parts of the United States. Technological advancements and a national contact network will allow the Fund to explore vast areas economically and efficiently.