We consider investment properties that are typically 100% fee simple interest. We will consider ground leases on a case-by-case basis.
We invest directly or on a joint venture basis. Co-venture partners are typically required to invest a minimum of 10%.
All cash or leveraged purchases are typically $40 million and up.
Wafra’s investment return depends on several factors, including the amount of leverage utilized, the property’s intrinsic qualities, future rental growth potential and comparative risk.
Leverage is determined according to the fundamental economics of each investment and to the extent we believe it can reasonably enhance our return on the investment. The market, the type of investment, and the strength and term of the leases in place generally determine the amount of leverage at the time of investment. A guideline of a 50% to 75% loan to value ratio is typically implemented.
Targeted holding periods for investments are generally 36 to 120 months.