Our investment thesis has been honed over the past 30+ years of investing and managing a variety of real estate assets through the Pacific Northwest. The formation of the family office structure in 2017 allowed HFO to design a broad investment strategy that assessed the risks and opportunities of a wider spectrum of investment channels. With a deep concentration in commercial real estate, HFO has enjoyed remarkable returns over the past three decades that has resulted in a portfolio of assets today that serves as the foundation of our investments. Our investment thesis is based on the following:
We are a REAL ESTATE FIRST investor
- We place high value on markets with expanding and diversified job growth, particularly in technology and manufacturing industries
- We place high value on markets with high barriers to entry
- We place high value on multi-tenant commercial real estate with an emphasis Multi-Family apartment properties
- We place high value on investments with the ability to secure favorable long-term debt (10yr+) using conservative loan-to-value ratios
- We place high value on assets that produce consistent cash flow beginning in their first quarter of ownership
We are opportunistic investors in OPERATING BUSINESSES
- We place high value on operating businesses that create strategic advantages for our existing portfolio of commercial real estate-related businesses with a priority on property management companies in the Western US.
- We place high value on organizations looking for a succession of their current ownership group or who bring unique expertise or competencies to our current scope of services.
We are opportunistic investors in EARLY STAGE COMPANIES
- We place high value on companies where we see disruptive application of technology to the real estate industry.
- We place high value on the entrepreneur and the management team
- We place high value on the profile of the other early stage investors
- We place high value on companies with clear exit strategies.