Pie chart showing property diversification: multi-family (48%),
industrial (19%), office (16%), retail (14%), mixed use (3%).
Map showing geographical footprint: East (44%), South (29%), West (17%), Midwest (10%).
BBH Real Estate (BBHRE) invests directly in institutional-quality, income-producing commercial real estate properties. We invest across geographic locations and property types, which may include multi-family, industrial, office, retail, and mixed use, along with alternative/niche sectors (self-storage, medical office, and so forth).
In addition, the BBHRE team comprises seasoned experts who act as fiduciaries and can help you examine your own real estate needs.
Property diversification and geographical footprint1
Our process and management approach
- Rigorous evaluation process for every property
- Component-level checkpoints ensure only high-quality assets are pursued
- Quality-biased process that includes deal sourcing, due diligence, and closing
- Proactive management approach
- Select asset enhancement strategies include:
- Identify path of growth markets with demand potential
- Utilize internal credit team to identify assets with attractive tenants
- Seek to invest in properties with underperforming management teams, poor cost control, and assets with existing deferred maintenance requiring capital expenditures investment
- Seek underperforming assets due to increased vacancy, below-market leases, and upcoming heightened lease turnover schedules
- Structured to retain investment control, including acquisitions, financings and disposition decisions
- Leverage capabilities of best-in-class operators and managers to identify investment trends
Target investment profile and property characteristics
- Focused on investing in a diversified portfolio of stable, income-generating properties
- Seek to acquire assets that have the potential to generate higher net operating income, utilizing active asset management and meaningful capital investment, including real estate that needs renovation and the opportunity to improve tenant retention and or enhancement
- Assets must adhere to strict criteria, including age, tenant caliber, building quality, and market selection
Core and core plus:
- Real estate attributes:
- Institutional-quality industrial, multi-family, office, and retail properties
- Located in markets with favorable supply/demand characteristics
- Substantially leased and occupied
- Markets: Top 75 domestic MSAs
- Financial attributes:
- Asset size: Most between $15 million and $100 million
- Modest leverage: Not leverage dependent, but instead approaches the capital markets opportunistically, utilizing debt placement when it benefits each investment
Value-add and opportunistic:
- Real estate attributes:
- Institutional-quality multi-family properties located in Southeast and Midwest U.S. markets exhibiting strong demographics (population, employment growth etc.)
- Financial attributes:
- Asset size: Most between $25 million and $100 million
- Leverage: Slightly higher leverage vs. core/core plus, but utilizes the same adjustable approach, rather than having a set approach to deal asset
- Acquire properties within attractive gateway, primary, and secondary real estate markets across the U.S.
- Supply-constrained or path of growth markets
- Relatively strong employment and/or population growth (percentage or absolute)
- Concentration of high-growth industries (technology, energy, education, healthcare, etc.)
- Educated workforces
- Above-average household incomes
- Desirable for young residents due to job opportunities and/or quality of life (scenic, cultural, entertainment, etc.)
An experienced, comprehensive team
- Dedicated professionals with decades of collective real estate experience
- Partner with best-in-class operators
- Hired as BBHRE’s partner and fiduciary
- Help identify assets to purchase
- Source investments and oversee property managers and leasing brokers
- Implement strategy generated by BBHRE
- Team of professionals across all disciplines and property types
- Access to proprietary data generated from existing real estate under management, providing differentiated and real-time data for decision-making to identify investments
- Investment committees are required to approve each investment
- Senior BBH professionals, including multiple Partners
- Approves the acquisition, financing, and disposition of each investment
- Acts as conduit to entire BBH network to facilitate optimal decision-making
BBH Real Estate tear sheet
1 By square feet
This communication is for informational purposes only. The information herein has not been based on a consideration of any individual investor’s circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. Individuals should consult their personal tax, accounting and legal advisers regarding any potential investment or strategy. Any views and opinions are subject to change at any time.
This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized to do so.
Alternative Credit Strategy Risks Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, maturity, call and inflation risk; investments may be worth more or less than the original cost when redeemed. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. Mortgage-backed securities have prepayment, extension, and interest rate risks. Asset-Backed Securities (“ABS”) are subject to risks due to defaults by the borrowers; failure of the issuer or servicer to perform; the variability in cash flows due to amortization or acceleration features; changes in interest rates which may influence the prepayments of the underlying securities; misrepresentation of asset quality, value or inadequate controls over disbursements and receipts; and the ABS being structured in ways that give certain investors less credit risk protection than others. Single Asset-Single Borrower securities (“SASBs”) lack the diversification of a transaction backed by multiple loans since performance is concentrated in one commercial property. SASBs may be less liquid in the secondary market than loans backed by multiple commercial properties. Below investment grade bonds, commonly known as junk bonds, are subject to a high level of credit and market risks. Because the equity CLO tranche’s success depends on the success of the loan tranches - it’s last in line to receive cash flows and first to realize loan losses - its investors take the most risk of any CLO investors. There is no assurance the investment objective will be achieved. The value of an investment may be adversely affected during times of market stress and volatility.
Investment Advisory Products and Services:
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