REAL ESTATE IS A TAX PREFERRED INVESTMENT CLASS, THAT OFFERS BOTH DIVERSIFICATION AND ATTRACTIVE RETURNS
Economic growth, housing supply constraints and regulatory hurdles combine to create the investment opportunities we seek. Efficient market theory holds that there is perfect information, buyers and sellers remain in balance, and investors act without emotion: while we can debate the merits of the theory, we claim those characteristics make for unattractive investments. Rather, having an asymmetry of information (for example, knowledge of relevant future events such as a local corporate expansion), an out of balanced local market (demand temporarily exceeds supply) and irrational investors (for example, a buyer that is more bullish than most) are all hallmarks, if managed well, of investment success. It is difficult to outperform a market. However, by skillfully cherry-picking opportunities, one can selectively achieve long term attractive returns in commercial real estate.
Long term success not be one-sided: Ratel believes that the sponsor of an investment, should never prosper before the investors. The proper alignment of investor interests is a central tenant of our business model. Ratel invests at least 10% of the required equity, we keep our fees low, and Ratel provides investors with a preferred return. By design, investors always prosper before Ratel realizes a profit.
Ratel intentionally maintains a limited number of investors to facilitate a personal, and client-driven approach to investor relations. Our communication style is clear and transparent. Ratel provides investors with easy access to information and decision makers. Finally, we are focused on our investors and provide timely information, with a personal touch.
Ratel offers both fund and single investment offerings. Our priority is to protect investor capital. Our investment analysis starts with the track record of our partner. Next, we examine the broad, macro-economic, environment of a prospective investment. Then, we examine the local supply and demand dynamics of the marketplace. Finally, we scrutinize the unique elements and the business plan of an individual investment. With this process-oriented approach, we follow a disciplined approach to investing.
Often equity providers have structured, programmatic offerings. In contrast, Ratel’s equity investments are custom designed, flexible solutions optimized to suit each opportunity. We have provided equity as a General Partner, a Limited Partner, Preferred equity and Pari Passu equity. Ratel invests in both ground-up and value-added, multi-family opportunities. Further, once an investment advances, many equity providers have exact expectations, even in the face of turbulent times. In contrast, Ratel’s
perspective is different: we are a partner, constantly searching for the best outcome given real-world constraints.
Ratel has a streamlined decision-making process, and our partners obtain a high degree of confidence with our clear communication style. Also, we move quickly and efficiently to advance opportunities and, when required, to respond to market challenges. Ratel’s transactions are structured to fit each unique opportunity and we typically do multiple investments with a partner.
Ratel’s structure avoids lengthy committee processes or rigid timelines. We work closely with our partners to help structure an optimal capital stack. Also, Ratel is actively involved throughout the investment process: we provide another perspective on markets, deal points and development plans. Further, Ratel offers certainty of execution: Ratel has performed on 100% of our business commitments.
With more than 25 years of real estate experience, we are familiar with both inflating and deflating real estate markets. Ratel communicates our business
requirements and, in exchange, offers our experience with a clear focus on value creation. Ratel recognizes market volatility: we counter with resilience and creativity to adjust to changing circumstances. Ratel
provides trustworthiness and diligent business execution.
Ratel is a nimble solution for real estate private equity. We have a focused strategy and business integrity. Ratel is well positioned to successfully work with
partners to achieve profitable investments in multi-family opportunities.