Investment Criteria
We are hyper-focused on investing equity as a General Partner and Co-General Partner along the following strategies.
Strategy – Class B Industrial
Asset
Industrial
Deal Size
$3-30M
Type
Light & Flex
Use
Warehouse, Distribution,
Light Manufacturing
Location
Florida
Georgia
South Carolina
North Carolina
Kansas
Missouri
Strategy - Mission Critical Real Estate That Supports Operators
Asset
Manufacturing,
Industrial,
Quick Service,
Unique
Deal Size
$1-150M
Type
All
Use
Operationally Critical Real Estate;
includes manufacturing,
concrete companies,
healthcare facilities,
quick service activities and other unique properties
Location
Continental United States
Investment Thesis
Thematic Capital Group draws its inspiration from those who came before us. Our investment thesis can best be summarized by the late great Sam Zell:
“I would tell you that whatever business I have been in — real estate, barges, rail cars — it’s all about supply and demand…When there is no supply, real estate performs very well. Almost without regard, within reason to the economic conditions. When there is oversupply, it doesn’t matter what’s going on — real estate is going to suffer.”
Holding true to this belief, Class B Industrial continues to exhibit favorable supply-demand factors driven by the following causes:
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Rise in E-Commerce
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Growth in the Home Services Sector
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Sticky Tenant Base
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Historic Underdevelopment Due to Economies of Scale
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Niche Deal Size
Similar to the thesis underpinning our focus on Class B Industrial, so too is there a supply-demand imbalance for experienced operators. The more niche the operator, the more critical their real estate is to their business model. In addition, proven operators tend to prefer to lease their real estate so that they can dedicate the cash to their business model rather than the underlying real estate asset. We identify mission critical real estate for the following reason:
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Undersupply of Suitable Real Estate for Niche Operations
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Long-Term Leases Backed by Corporate Guarantees
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Maximize Diversification Across Both Industry and Geography
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Above-Market Yield on Cost Provides Day 1 Spread
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Limited Buyer Pool