100 Shoreline Hwy, 200-B | Mill Valley, CA 94941
Tel: 415-339-4094 | Fax: 415-339-4099

Investment Criteria Since 2000, Kipling Partners and its Principals have assessed hundreds of potential acquisitions in what is generally considered to be a very difficult and competitive marketplace. Low interest rates have emboldened many real estate buyers to purchase properties at very high prices. Kipling Partners makes investments dependent on realistic assumptions in terms of underlying economic fundamentals, and does not utilize short-term low interest rate loans to produce cash flows that are expected to be short-lived when interest rates increase. While each transaction is assessed based on its own intrinsic economics; some general criteria typically apply when considering a potential investment opportunity: Real Estate Investment Profile To own stable income-producing real estate properties with long-term appreciation potential, with holding periods of up to 10 years or more, and to generate strong, annual tax-deferred returns and refinancing proceeds during the entire holding period. Special emphasis is placed on underperforming assets possessing the potential to produce superior results. Investment Size Generally we seek investments between $10 and $60 million. Targeted Stabilized Cash Flow Yields Target stabilized annual tax-deferred cash flow yields initially of 5% to 9% or higher, with the expectation of increasing to significantly higher levels over a 10-year holding period. As appropriate, it may be possible to return all or a portion of the invested equity capital by means of prudent refinancings as a property's cash flow increases significantly. Targeted IRR Returns The IRR goal is based on the specific risks, property type, expected holding period, and other relevant attributes of the investment opportunity. Property Types Income-producing properties including apartments, retail, industrial, office, and hospitality in markets with projected strong long-term employment and population growth. In addition, special focus is placed on value-added repositioning opportunities where post-positioning stabilized cash flows are expected to provide superior returns. Typical Capital Structure Loan to Total Cost/Value: 65% to 75%* Equity to Total Cost/Value:   25% to 35% Average Debt Term: Generally, 7 to 10 year terms with fixed interest rates; 30-year amortization periods.* Direct Acquisitions or Joint Ventures with Local Partners Kipling Partners seeks to directly acquire properties located primarily on the West coast. In addition, Kipling Partners has formed strategic alliances with highly qualified local joint venture partners in certain desirable markets to acquire properties throughout the United States. On a case-by-case basis, Kipling Partners joint ventures with local partners who possess specialized local expertise, property management and operations, and who always co-invest in the property.