investments

Overview

Retail Grocery Anchored

Hospitality

 


Retail Grocery Anchored

Our investment thesis centers on assets that are resistant to e-commerce and other retail structural threats by focusing on retail product that meets the basic needs of their communities through the grocer, retail, food service and general services provided. A strong focus on asset quality, long anchor lease duration and rising lease income throughout the investment cycle will reward investors with attractive cash on cash returns, consistent and rising annual cash flows and a resulting robust IRR and multiple on invested capital.

Our deal sourcing focuses on quality anchor brands that we know well.  We work hard to understand their business models and overall corporate structures in order to mitigate risk on the systemic front. Our investment strategy then targets those properties where significant anchor term exists or the probability of anchor extension is increased via pre-closing negotiations due to our unique corporate relationships.  The value enhancement opportunity of each asset type, whether it be “core-plus”, “value-add” or “opportunistic”, will be carefully weighed and underwritten prior to a Purchase and Sale Agreement (PSA) being executed.. Prior to the execution of the PSA, a critical macro-study is undertaken from the perspective of the anchor tenant(s).  If the results of that macro-study are positive, then a preliminary micro-analysis (property specific) is conducted to determine if the underpinnings of the deal are able to meet the targeted stabilized Return on Project Cost criteria (enhanced NOI relative to cost basis plus CapEx investment).  Once viability is determined, then Mayfair fully engages in the PSA process.  The steps taken during the early stages of the process are critical to ensure probability of closure.  Our pedigree and experience in retail is paramount here, and Mayfair’s judgement skills help us avoid missteps.

Mayfair engages a hyper-focused, systematic approach to the acquisition of its retail investments through our macro and micro underwriting standards, based on our deep experience with this asset class, and our unique relationship with strategic anchors.  The process improves closing probability while reducing execution risk. Our “hands on” approach to operations and business plan implementation makes for a long-term value enhancement strategy resulting in solid returns to its co-investment partners.