Mokhus pursues a variety of real estate asset classes in its acquisitions, investment partnerships and consulting work. The strategy is regularly evaluated and is adjusted when needed to meet the evolving needs of our investment partners, the state of the market, and the hurdles and expectations of the firm and its principals. Flexiblity in our approach is paramount. We identify the most likely areas for value investment early in a cycle. At Mokhus, successful transactions are those in which we have an “edge” over others and over the market for reasons such as optimum cost structure, creative newer ideas, niche expertise, access to competitive investment capital or financing and original deal structuring. Sometimes what it takes is just plain old-fashioned hard work; we are not afraid to get our hands dirty.
Mokhus seeks to purchase assets at less than current market values and/or replacement costs rather than following the herd, which only follows market trends or the lead of the large players who dominate many markets. In the end it always comes down to the individual transaction. We are not afraid to be contrarian if we have the analysis and strategy to back up our plan, just as we are not afraid of difficult transactions, which are too often overlooked by other groups. Out of distress always comes opportunity, and out of opportunity comes growth and wealth. Mokhus is a creator of value: we strive to enhance asset value thorough every segment of the investment, our approach is not a passive one. Mokhus’ analysis team evaluates every deal on its own merits and reviews risk/reward profile throughout the cycle of any transaction. One cornerstone of Mokhus success is our insistence on working with strong sponsor and operating team. We also make sure that any Mokhus transaction has a clear business plan with high, yet realistic returns and a logical and timely exit strategy which is acceptable to our investment partners.
Some of the assets we seek for acquisition, joint ventures or involvement as a consultant to principals and owners include the following:
Multifamily: Primarily Class B apartments, including those in secondary markets. Number of units should be 100 or higher. Class A multifamily deals are currently less interesting for our investors due to the compression in cap rates, but we will review these transactions if there is a restructuring component to the deal.
Hospitality: Limited service and boutique type hotels with more than 70 keys. Ideally, we’d have an opportunity to restructure operating management and/or bring a new brand to the property.
Distressed Debt: We purchase or assist in the restructuring of first mortgages underlying performing and sometimes non-performing physical assets, through financial institutions, distressed owners or investors, short sales, bankruptcy liquidations, trustee auctions, and government sources such as the FDIC.
Land (Infrastructure): Land acquisitions in regions where our operating partners have a presence, most often when entitlements are done and is partial infrastructure in place.
Golf and Recreational: Higher end golf courses where there is an existing residential component needing work or land is included with the transaction or can be optioned so a residential component can be maximized.
Retail: Single tenant, with triple net lease structures, often in the high-end “trophy” areas, as well as some shopping centers with a strong anchor tenant potential.
Senior Housing: Property with potential for (or existing) senior housing in markets with significant demand. Current focus is on Active-Adult which is typically single family age-restricted to 55 with golf and amenities with less focus on acute-medical care.
Adaptive Reuse: Properties which are beyond their useful market life, having potential for redevelopment into assets of highest and best use, such as a warehouse for conversion converted into a rental loft apartments.
Deal Size: Minimum deal size of $10 Million, up to $100 Million or more, with our typical successful transactions falling into the $30 - $60 Million size range
Consulting Work: For Consulting work with developers and owners of real estate we take on transactions of any size on a case-by-case basis if we feel that our expertise can help bring a successful resolution to a project