HP Investors is focused on urban and infill real estate investment opportunities. The firm believes that investments in this sector are best positioned to benefit from changing demographics, consumer spending habits, and increasing real estate scarcity.
The firm evaluates each of its investment opportunities based on the following criteria:
- Sustainable long-term location and market characteristics
- Compelling downside protection and risk mitigation strategy
- High density and well-trafficked corridors
- Positive location externalities
- Favorable demographic trends
- Local supply and demand analysis
- Near term cash-flow generation
Research Based Approach
HP Investors employs a data-driven research process to identify industry and market trends that are poised to create significant long-term value, including studies of supply/demand imbalances, changes in tenant demand characteristics, and detailed demographic analysis.
Going beyond typical market research, HP Investors creates information advantages through its deep local relationships with community leaders and interest groups. This deeper level of research provides the firm with the ability to make better long-term investment decisions.
Detailed Quantitative Analysis / Deal Sophistication
HP Investors leverages its strength in quantitative analysis to structure and create creative investment opportunities.
The firm has implemented sophisticated deal structures with developers, property owners, tenants, and lenders to reduce risk in its investments and create new opportunities.
For each investment HP Investors creates a risk mitigation plan to identify potential pit-falls and identify solutions to avoid them. This process of identifying and eliminating risks provides our investors with superior risk-adjusted returns.
HP Investors strongly believes in a “hands on” approach to real estate and, unlike many of its peers, the firm self-manages all its investments. As such, the firm does not retain third-party property managers for any of its owned properties, as it believes that direct oversight of all aspects of an investment results in the best execution of a project’s business plan.
HP Investors emphasizes the creation of long-term value and focuses its asset management decisions on sustainable value for an asset.