Investment Strategy
During 30+ year careers focused on cutting edge real estate investments in California, the Partners of GPI have owned, managed, and developed several of the region’s most successful, innovative, community oriented, high quality urban projects. This experience uniquely positions GPI to execute a diversified real estate investment strategy. Furthermore, the current economic environment creates an ideal opportunity for investors with extensive operational experience. Seasoned real estate operators are extremely familiar with the nuanced components that drive a property’s value and consequently have a unique understanding of the fundamental operating profit drivers of commercial real estate assets. With a team of experienced real estate operators, GPI is well positioned to achieve superior risk-adjusted returns.
GPI’s operational expertise allows it to recognize mispriced assets as well as identify assets with value-add components. GPI enhances the value of underperforming assets through all phases of the ownership cycle via a vertically integrated organization offering in-house professionals focused on acquisition, entitlement, management, operations, leasing and construction. In addition to having the capabilities to add value to a variety of properties, GPI is able to minimize risks through capitalizing on unparalleled, localized submarket knowledge. GPI can assess early mover opportunities and risks (i.e., specific tenant leasing opportunities, off-market sales through proprietary broker relationships, opportunities to re-entitle assets based on proven history of successful community and government relations, etc.).
Investment Strategy Core Elements
Capitalize on California
Although the company invests opportunistically across geographic regions, its primary focus is select communities in the major metropolitan areas of California. The favorable macro-fundamentals of these markets include high density and expanding population, well-educated and creative workforce, efficient transportation corridors and infrastructure, and world-class healthcare and educational institutions. As a result, GPI believes that demand for office, multifamily, flex-industrial, and mixed-use product in these markets will continue to experience durable demand. Furthermore, historically, prices have been less volatile in these markets because of the limits on supply due to land scarcity and entitlement challenges.
Target Specific Submarkets
Within the major metropolitan areas of California, GPI targets specific submarkets which it believes will deliver the best long-term value. The Partners’ extensive experience has given them the unique ability to uncover and target the most attractive infill properties. These properties typically offer improving demand fundamentals due to urban re-generation, creative class movement and gentrification, limited supply and powerful land constraints, and liquid exit options due to robust investor demand and capital markets.
Generate Attractive Risk-adjusted Returns
GPI brings operational expertise to multiple-product and investment classes and invests across multiple product types including office, retail, multifamily and mixed use properties. In addition to its diverse product approach, GPI targets assets across a range of risk/return profiles, from core plus to opportunistic and development. This flexible approach not only diversifies GPI’s portfolio, but also allows GPI to capitalize on opportunities that other investors might overlook or not be able to execute on. GPI is able to efficiently manage the entitlement, development, redevelopment and operations of large and complex assets. This flexibility creates opportunities for GPI to successfully invest at all points of a market cycle while maintaining conservative underwriting assumptions.