Our team has 37 years of combined experience managing fixed income portfolios, specifically in commercial mortgage backed securities (CMBS), and commercial real estate related securities and investments. We have invested over $2.0B in commercial real estate assets and securities nationwide.
Most of these investments were in CMBS B-pieces, which required a property-by-property full diligence across all property types and geographies. It is this in-depth property-by-property due diligence that forms the foundation for our investment strategy.
The cornerstone of our strategy is our ability to underwrite the risk of our underlying investments and apply this up and down the capital stack of each investment. Our team has been monitoring CMBS collateral through two commercial real estate credit cycles on a majority of our underlying investments.
With this experience and historical background on the assets, we not only seek to limit credit risk, but but also to avoid securities that could perform poorly or are not able to be properly underwritten due to lack of information or forecastability.
Once a security is identified for its preservation of principal, strong consideration is given to the investment’s ability to generate cash yield through interest payments for investors. The focus then turns to diligently monitoring the investment for changes in the collateral that could impact the investment’s cash flow or valuation.