Ratel works in collaboration with real estate operating partners to acquire value-add commercial properties.  Specifically, we look to the following parameters when evaluating potential new investments.

Equity Requirement	Investments requiring $2 - 8 million in third-party equity, typically for the acquisition and improvement of properties valued at $5 - 35 million.
Target Return	Opportunities with a projected internal rate of return of 17% - 22%, adjusted for risk.  Further, we prioritize investments that, once stabilized, generate recurring cash flow.
Asset Type	Multi-family properties (including for-rent senior housing communities) of 100 or more units and retail centers larger than 100,000 square feet.  Selectively, Ratel will provide capital for assets that fall outside of our core focus.
Asset Class	Primarily Class B value-add properties in locations with strong fundamentals.  Common challenges include poor management and marketing, cosmetic renovations, financial distress, expansion potential, retenanting and repositioning opportunities.
Pricing	Properties priced below replacement cost or that are selling at attractive market capitalization rates relative to recent comparable sales.  Additionally, we prefer pricing that allows for positive leverage and solid cash flow.
Geography	High-growth urban and suburban markets nationwide, although primarily in the Western/ Southwestern US.  Ratel actively seeks markets with favorable demand characteristics such as strong job and population growth coupled with supply constraints to new construction, including land and water restrictions and zoning limitations.  Occasionally, for compelling opportunities, we will provide capital for properties in more distant geographies and more rural locations.
Debt Structures	Each transaction is individually financed.  Typically, the properties in which we invest have traditional non-recourse commercial mortgage origination loans or agency debt with 65% - 80% loan-to-value.