Target Asset Profile and Risk Appetite
REITs and syndications operate under defined criteria that balance income stability, appreciation, and portfolio diversification
- Preference for shovel-ready or rezoned parcels with minimal entitlement risk
- Core-plus and value-add strategies seek underutilized land in growth corridors
- Risk-tolerant funds may pursue land banking or speculative urban edge tracts
- Focus on assets that align with long-term capital preservation and yield goals
Location and Market Selection Criteria
Acquisitions are concentrated in markets with strong fundamentals and long-term demand drivers
- Preference for metro areas with population and job growth, infrastructure investment, and TOD zones
- Prioritize proximity to highways, transit, logistics corridors, or dense employment nodes
- Some strategies target secondary cities for lower entry costs and higher cap rate spread
- Land near existing REIT holdings may be prioritized for operational synergy
Land Use Alignment with Portfolio Vision
Land must support development that fits the REIT’s or syndicate’s property type specialization
- Office-focused REITs seek parcels zoned or convertible for corporate campuses or flex parks
- Industrial syndications target sites suitable for logistics hubs, warehouses, or light manufacturing
- Mixed-use or urban REITs prefer TOD parcels with zoning for vertical residential-retail-office integration
- Acquisition teams assess future income potential via build-to-suit or joint development agreements
Financial Structure and Exit Strategy
Each acquisition is evaluated for fit within the fund’s return timeline, debt strategy, and liquidity horizon
- IRR and equity multiple targets influence land holding period and capital stack design
- Structured with phased deployment of capital to manage holding costs pre-development
- Exit strategies may include sale after entitlement, vertical development, or long-term hold for income
- Syndications may favor parcels that allow rapid investor return via pre-leasing or resale uplift
