Our Strategy
Value-Add Properties in High-Growth
Areas with Vertical Integration
Our strategic investment strategy, honed through experience, adheres to specific criteria proven to demonstrate a favorable risk-reward ratio for all investment partners
Our Process
Our Process
We target markets where we can successfully operate throughout the real estate cycle. This means focusing our efforts on areas with sustainable growth supported by a diverse set of strong economic drivers and favorable supply-demand dynamics.
Sourcing And Acquiring Attractive Properties
Our ideal building is one that has been untouched for 10 or more years with significant arbitrage between in-place and market rents. An important component of our ability to capture favorable entry prices is our exceptional skill at sourcing off-market deals.
Creating Value Through Customized Extensive Renovations
Our targeted renovations yield higher rent, increase tenant retention, and reduce vacancies resulting in stable low volatility assets, increased value creation, and higher returns to investors.
Institutional Team
The Southgate team consists of institutionally trained individuals from leading firms throughout the industry.
Embrace Technology
Southgate embraces and harnesses advances in real estate technology to provide a superior experience to both tenants and investors.
Our Criteria
Internal Rate of Return (IRR)
Mid-Teen to High-20%
Cash on Cash
6-12%
First Capital Event
Refinance 12-24 months (after renovations complete)
Refinance Outcome
Potential cash-out
for investors
for investors
Discount to Replacement Cost
Significant
Typical Hold Period
5-7 Years (Value-Add), Longer
for Redevelopment
for Redevelopment
Exit Strategy
Sale or Refinance
(or Redevelopment then Sale)
(or Redevelopment then Sale)
Distributions
Quarterly
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