Our Proven Strategy
At Savlan Capital we have an established record for preserving capital and creating new value. Our dependable performance is the reason that many of our investors choose to reinvest with us deal after deal.
1. Selection
Location
Savlan Capital understands the importance of having well-located and strategically positioned assets. Our goal is not just to jump into any hot market, but also to analyze the connection between the location and the functionality of the targeted asset in relation to the tenants it attracts. We look at how the properties we select are serving a purpose within a specific community or market that would make them irreplaceable and highly competitive. Our assets are located nationwide in large, growing markets and in small American towns. We do not only look for assets in valuable locations, but we know how to find the value in unexpected locations.
Intensive Hands-On Research and Due Diligence
In addition to ongoing market research, we confirm our findings with site visits and investigate each area, asset, industry, and tenant that we bring on-board. Our objective is to understand specific market economics, demographics, and fluctuations in supply and demand before placing an offer on a property. This knowledge and involvement give us our advantage in acquisition opportunities. After our initial investigations, we go through a meticulous due-diligence process with every asset to make sure that the investment fits into our selection criteria and strategy to cultivate our capital.
Mindful Tenanting
Within our commercial properties, Savlan Capital specifically targets tenants that are in future-proof industries and are highly invested in their spaces so that they stay long-term. We work with best-in-class leasing teams to engage top national tenants and negotiate high-value creative deals. Once stabilized, our properties maintain minimal vacancy and an appealing tenant mix, which is key to sustaining the value we create in an asset.
2. Creating Value
Undervalued Opportunities
We are not afraid of a fixer-upper. When an asset meets our market fundamentals and has unrealized potential, Savlan Capital has proven it can put in the work to get a property back into shape. Our integrative asset management, which combines leasing and renovation strategy, has successfully led us to outperform our own models for value-add, distressed properties.
Creative Solutions
A large part of our underwriting focuses on deal structuring. We look at deals as more of a puzzle than a formula. While some prefer to follow the same blueprint deal after deal, we never write off a deal because it does not fit our previous model. Because of this approach, our value-add is not limited to distressed properties. Using capital structuring, tenanting, pooling, and other strategies, we find the right ingredients to make unique deals that extract untapped value from high-performing properties as well.
Redevelopment
Though our focus is not on ground-up development, Savlan Capital was born out of experience in the construction industry. Our construction background has given us an edge doing in-house renovations to actualize an asset’s potential. Our team is expertly skilled at designing, planning, value-engineering, and completing full property renovations at low costs with outstanding results.
3. Preserving Capital
Longevity
We are not flippers, we are holders. We plan our investments for the long run using conservative acquisitions assumptions with realistic investment parameters and market fundamentals instead of speculation. Our capital is expected to continue working for us and our investors long after it has been returned, which is why we target assets that create a safe harbor to keep capital through changing economic cycles. When we underwrite a deal, we run it through various risk assumptions including recessions in the economy to make sure our investments can weather a storm.
Cash Flow
The goal of our properties is to continue to cash flow throughout our extended hold and provide above-market returns for our investors and ourselves. We believe that income-producing real estate minimizes our exposure to market fluctuations. Our focus on long-term, stable tenancies and our high selection criteria helps us ensure the continued cash flow of our properties. To that end we recruit top-quality property management at all our properties to ensure they are the type of complexes that tenants want to stay in.
Flexibility
Our key to success is being able to navigate changing waters. As the global environment and markets fluctuate, we adjust our strategy when we recognize it is beneficial to our investors. We do not stick stubbornly to a plan if we see it is not working or a new risk lies ahead. Our strategy involves consistently assessing and reevaluating our plans in order to adjust them as needed and look for the new opportunities they can bring. We are not afraid to exit when it is prudent or advantageous to reinvest our funds and efforts into a better deal.