Investment Strategy

Benaroch has the ability and experience to provide secure and exceptional value to its investors.

Our Philosophy

At Benaroch, our philosophy is guided by three primary principles

Preservation of Capital: The preservation of the capital that is invested is at the core of our investment philosophy. This principle is always at the forefront of our mind when we conduct due diligence, perform the management, or leasing of our properties.

Discipline: Sometimes the best deals are the ones you don’t make. We have very strict criteria that the properties we acquire must meet and if we are unable to identify properties that meet these criteria, we have the patience necessary to stay on the sidelines and wait for a better opportunity. We will not stretch to make a deal happen. We will not make unreasonable assumptions.

Integrity and Respect: We have a strong sense of professional ethics in all aspects of the business we conduct. Further, every relationship must be treated with the utmost respect. Another of our core guiding, fundamental principles is that every move we make must be of the highest professional integrity. It is fundamental that the relationships we create must be based on respect. Whether it is dealing with limited partners, brokers, lenders or tenants, integrity and respect must exist.

Analysis

We strongly believe that the most value in any property is created before you actually own the property.

Phase 1 – The Market: Before we even find a property to acquire, we conduct a thorough analysis of the market. This involves studying the demographics and economic drivers, meeting with a variety of industry professionals in the market, and extensive personal touring of each sub-market within the city. We identify cities with good real estate market fundamentals.

Phase 2 – Pre-Offer: Once we locate a potential acquisition within an approved market, we conduct a detailed preliminary investigation of the asset. It is a worthwhile exercise which allows us to be very precise with how much we are willing to pay for the asset.

Phase 3 – Under Contract: Once the property is under contract, we perform the most detailed of the three phases of due diligence. It is at this point that we can get into the nitty-gritty of the deal and confirm all the findings of the previous two phases.

Phase 3 includes:

  • Environmental Study
  • Appraisal
  • Physical Inspections
  • Lease Reviews
  • Tenant Interviews (when possible)
  • Sourcing and negotiating financing
  • Legal and Accounting investigations
  • Pro Forma Financial Projection Stress Tests

Management Approach

By understanding landlord and tenant priorities and working to capitalize on the relationship, we succeed in bringing the highest returns to our limited partners.

Benaroch’s Property Management team provides a full service property management solution; through our years of experience, we have mastered the skills needed to effectively and prudently manage assets. We have a deep understanding of property owners, because we are property owners.

Effective property management is a delicate process that perfectly balances art and science. The right property management team can help achieve much greater profitability than expected and can help to see new and innovative ways of increasing earnings and asset value.

Regardless of the location of the asset, we locate the best industry professionals in the market and build a strong, local advisory and management team from these best-in-class professionals. This allows us to easily work remotely in each market from our head office in Montreal as these teams of professionals work with us on a daily basis, as Benaroch’s local representatives. These individuals often participate as limited partners to ensure their dedication to the success of our acquisitions.

Acquisition Criteria

Retail, office and industrial properties that meet a selective investment criteria.

Investment Type: A hybrid of the stabilized and value-add property types. Our ideal asset is one that is well located and which has a reasonable operating history (stability). The asset would also typically have some sort of operational inefficiencies, under performing rents or physical deficiencies, which could be rectified by our hands-on management approach (value-add).

Property Class and Location: B or C class assets that are located in A or B class sub-markets of the cities in which we operate. Our experience over the past 20+ years of real estate investing is that these types of assets in these sub-markets have the best chance to preserve capital and provide a reasonable return both during the holding period and upon final disposition of the asset.

Purchase Price Range: $2,500,000-$30,000,000