INVESTORS

Multi-Generational Investment Platform



THESIS

The U.S. commercial real estate market is undergoing a significant repricing driven by the sharpest interest rate shock in a generation, a severe pullback in credit availability, and a wall of maturing debt. Financing costs have doubled or tripled since 2021, while traditional lenders have retrenched, creating a capital void that is pressuring asset values across all property types.

This dislocation has created a unique window for disciplined, well-capitalized investors to acquire institutional-quality asset, particularly in the office sector, at a compelling basis. FRI is positioned to target high-quality buildings facing capital structure distress but with stable fundamentals, concentrated in Sun Belt and gateway markets where demographic tailwinds support long-term recovery and value realization.

INVESTMENT STRATEGY

  • Value Creation: enhance properties at the physical level to increase cashflows, independent of market performance.
  • Disciplined Investment Pace: invest selectively based on consistent and rigorous underwriting standards.
  • Asymmetric Risk Profile: prioritize in-place contractual cash flow to ensures that operating income can recoup the majority of equity invested resulting in robust downside protection.
  • Deal Flow: Longstanding relationships that generates a deep pipeline of opportunities, ensuring consistent access to high-quality acquisitions even before they reach the broader market.
  • Moderate Leverage: Portfolio leverage limited to 70% with non-recourse loans and no cross collateralization.

FRI ADVANTAGES

  • Vertically Integrated: In-house asset management, property management, leasing oversight, and construction supervision; ensure alignment, executional control, and operational efficiency.
  • Cycle-Tested Investment Strategy: Active through multiple market cycles, FRI has demonstrated the ability to underwrite and execute through volatility and capitalize on periods of distress.
  • Local Insight, Institutional Discipline: The firm combines granular market intelligence and direct operating experience with institutional-grade underwriting and governance.
  • Proprietary Deal Flow: Deep-rooted relationships with lenders, brokers, and local ownership groups consistently yield off-market and pre-emptive opportunities.
  • FRI and its executives: will be contributing a significant amount of capital to the acquisition.

Disciplined Underwriting

  • Underwrite all acquisitions using a base-case of flat or negative rent growth in the first 12–24 months, coupled with stress-tested exit cap rates and "next buyer analysis" ensure upside only accrues from realized outperformance.
  • Employ multi-tiered stressed underwriting, base, downside, and upside cases. Incorporating third-party market data, and macroeconomic stress factors to validate return forecasts under varied market conditions.
  • Require detailed physical and financial diligence, including forensic review of cap-ex needs, lease abstracts, and market studies. Investments are only approved when intrinsic value exceeds purchase price by a meaningful margin, ensuring robust downside protection.

Acquisitions Criteria

  • Target Deal size:
    • $30- $300 Million
  • Target Markets :
    • Geographically agnostics (depended on the opportunity)
    • Focus on South Florida & Sunbelt
  • Target Assets
    • CBD trophy office (top 3 building in market)
    • > 60% occupied (credit tenancy)
    • 5+ yrs of WALT