Strategic Investments in a Post-Corona Environment
In today’s market, solid investments abound.
Yet, those are not the ones that we pursue.
We’re looking for more…for value.
Since 2008 Jacobs Real Estate Advisors, LLC has specialized in value-add and strategic opportunistic investments.
This strategy is what brought us to the forefront of the industry, taking us to 650 million in real estate acquisitions to date, with an average IRR of 228% on sold investments.
“We’re never looking for a ‘fully cooked deal’ — a stabilized asset,” says our Principal Sholom Jacobs. “Investors don’t need us for that. What we seek is an investment that allows us to make changes, to improve and cut costs, creating more value.”
Distressed, undervalued, and poorly-managed real estate portfolios are the mainstay of JREA. Through improved supply chains, consolidated maintenance, and lucrative property improvements, we raise the value of a property so it outperforms the market.
Take for example a recent shopping mall acquisition in Atlanta, Georgia. “We quickly cut expenses by 1 million by bringing in our security and cleaning teams. Ultimately, we brought an NOI of 5 million up to 8 million.”
Thanks to this proven, selective strategy, JREA doesn’t take most of the deals that are presented. Our specialists carefully evaluate each property and its strengths, and how we can add value.
“We turn down a majority of the deals we’re offered,” says Sholom. “We only take deals we love, the ones that we are confident we can provide significant value-add.”
That makes today’s market ripe for investing with JREA.
With the coronavirus pandemic and subsequent shutdowns and economic upheaval, many more businesses will be unable to carry their mortgages and commitments, leading to many more properties in distress and in foreclosure.
“The climate now is similar to 2008,” says Sholom. “It was a unique opportunity then, and it’s a unique opportunity now for investors to take advantage, to turn around distressed properties and see profitable returns. Our strategy is built for this.”
