T-Rex emphasizes a value-added investment approach and applies its Investor/Owner/Operator Philosophy in managing its investments. This approach creates a financial discipline that emphasizes an intensive hands-on management style.
This proactive approach is a central component to the success of T-Rex’s investment program. T-Rex exercises prudence in every decision, makes selective capital expenditures, and reasonable expense reductions to increase asset values and improve operational efficiencies. Our experience allows us to evaluate challenging assets, devise a value creation strategy and effectively execute our goals.
For decades, T-Rex has been focused on identifying, targeting, financing and capitalizing on opportunities. Through its proprietary institutional access to transactions, T-Rex has built a reputation for investing intelligently and achieving above-average risk-adjusted returns through timely investments in off-market transactions. It has always been results-oriented rather than fee driven.
The following are indicative of the T-Rex investment approach:
- Institutional investment opportunities are sourced on a proprietary basis that result from relationships in the marketplace with lenders and other capital sources. Non-competitive situations are sought for all investments.
- Unique situations, complex capital structures, intensive senior management requirements, and tax-advantaged re-structuring all represent areas of opportunity for the T-Rex investment program.
- Pre-acquisition diligence is undertaken on two parallel courses. The highest standards of physical and financial diligence are applied to the investment as it currently exists. Simultaneously, the investment team pursues a course of diligence designed to improve upon the existing economics of the transaction prior to purchase. Such activities include negotiating lease extensions or buy-outs, amending leases, aligning disparate ownership interests, obtaining improved zoning and densities from local jurisdiction, negotiating reduced off-site requirements, pre-selling out-parcels and other basis-reducing transactions.
- Investment and asset management begins at the property management level. T-Rex utilizes its wholly-owned property management subsidiary or enters into a venture with an established operating partner whose interests are fully aligned. Asset management is viewed as a critical element of investment return and is engaged in each transaction during the due diligence phase.
Speed is a competitive advantage in today's acquisition environment and T-Rex prides itself on its ability to be market-driven and evaluate potential targets quickly. T-Rex primarily seeks to acquire assets that have significant barriers to entry and that have been adversely impacted by a variety of circumstances such as:
- Poor management of the buildings tenant/leasing base
- Inefficiencies in the capital markets
- Failure of ownership to operate the asset as its highest/best use
- Inadequacy of the buildings ownership structure
- Deterioration of the facility's market position
T-Rex targets opportunistic investments through propriety deal sourcing and highly structured financings. Our entrepreneurial value-added approach enables the company to be both creative and nimble in pursuing investment objectives.
An uncomplicated, well-defined exit strategy is established prior to investment. Depending upon the nature of the investment, several alternatives for exit may be managed toward. The flexibility to exit an investment under varying circumstances and market conditions is a keystone of the T-Rex investment approach. All disciplines (property management, asset management, financial management) execute during the hold period toward a multiple-exit situation to provide superior returns.
Unlike fee driven funds, T-Rex is strictly results oriented and market driven. T-Rex is structured such that its Principals have no pressure to invest capital but can choose from a variety of exclusive opportunities due to their private institutional access that has resulted from long standing relationships formed over the last 25 years, including most of the leading financial institutions in the world.