Strategy - Quannah Partners

Middle-Market Commercial Real Estate
Quannah brings broad-based institutional expertise to identify and manage investments that are typically not pursued by institutional investors. The team has owned and actively managed all property types ranging in value from $5M-$250M. When applying this experience to Colorado and Texas markets, the team is able to leverage this competitive advantage to maximize risk-adjusted returns for its investors.

1
Opportunistic Strategy

12%-25% IRR
Limited cash flow for distribution
Below replacement cost
Below market rents
30%-70% leased
Significant capital improvements needed
3-5 Year Hold

2
Core-Plus Strategy

8%-12% IRR
In-place income with opportunity to increase
70%-90% leased
Limited capital improvements
Strategic location that fuels leasing demand
5-10 Year Hold

3
Co-GP &
Direct Investments

Office, Industrial, Multi-Family, Retail
Development
Acquisition
Co-GP up to 95% of sponsor total GP requirement
$5M-$50M Total Capitalization
75% Max Leverage
4
Colorado &
Texas

Strong employment and population growth
Diverse economy
Close relationships with industry experts
In-depth knowledge of local markets
Investment Fundamentals

Basis-Driven Investing
Quannah targets properties that offer intrinsic long-term value. Quannah seeks to acquire assets at attractive values relative to replacement cost and stabilized cash flow. Quannah believes that an attractive basis protects downside risk and provides flexibility to thoughtfully pursue accretive leasing strategies.
Risk Analysis and Tactical Execution
Quannah underwrites investments with a critical focus on evaluating risk and risk mitigants. Quannah first assesses the downside risk of any investment. This involves research and analysis of macro and local economic factors. Quannah seeks to maximize value by developing and implementing a tailored business plan specific to each investment.
Value Creation and Cash Flow
Quannah is focused on acquiring well-located assets with identifiable opportunities to increase cash flow and create value through strategic asset management and active property management. Quannah believes that its proactive approach to asset management provides value creation opportunities that may be less reliant on improvements in market fundamentals or economic growth.