Investment Strategy
Target Acquisition Price
$4MM-$50MM
Target Stabilized Leveraged Cash Yields
7%+
Target Leveraged IRR’s
15%+
Ramser Real Estate Group ("Ramser") targets investments in core plus, value-add and opportunistic real estate assets with the objective of generating predictable, attractive cash-on-cash returns and long-term capital appreciation. Ramser acquires these properties through single-purpose entities (“SPEs”), joint ventures, or co-investments with other property owners.
Ramser invests in vehicle storage properties with low recurring capital expenditure requirements located in Sunbelt, recreation, sea port and inland port markets.
Ramser ‘s investment strategy focuses on buying properties in markets with strong growth prospects and a well-defined demand catalysts. Target acquisition prices fall between $4.0 million and $50 million. Target stabilized leveraged cash yields of 7%+ and leveraged IRRs of 15%+. Ramser utilizes its expertise and market knowledge to increase occupancy and focus on operational efficiency to generate superior investment returns.
We believe this investment strategy will provide strong risk adjusted returns.
Acquisition Criteria
Value-Add and Value-Oriented Investments
- Purchase price below replacement cost
- Light value-add opportunities
- Assets which may require recapitalization, re-tenanting, or re-positioning
Primary Site Attributes
- Facility: 50,000 – 120,000 or greater
- 3-Mile Population: 50,000+
- Submarkets with attractive supply & demand characteristics
- Land Parcel Size: 2-50 acres
- Permitted Uses: Industrial Outdoor Storage, Container Storage, and Managed Truck Parking
Acquisition Target Metrics
- Deal Size: $4M - $50M
- Stabilized Yield on Cost Profile:
- Stabilized 7%+
- Value Add 8%+
- Development 9%+
Key Site Characteristics
RV & Boat Storage and Managed Truck Parking / IOS Share Several Key Characteristics
- Very similar site attributes and location characteristics (low coverage, paved, industrial zoning, proximity to population centers)
- Niche market segments that have not attracted institutional capital at scale.
- Tenants are storing expensive durable goods that require storage unless they are destroyed
- Land coverage plays that often have exit optionality and cash-on-cash solid yields.
- Strong Demand: Ownership of RVs has increased by more than 62% over the past 20 years. E-commerce has increased outdoor storage demand for truck parking and container storage. Meanwhile, the need for traditional outdoor storage uses like laydown and contractor yards continues growing
- Limited or negative supply growth that has not kept pace with demand
- Limited future supply: Product types that are difficult to entitle and develop thanks to strict zoning requirements, unfavorable building-to-land coverage ratios, municipal development restrictions, and high land and construction costs
- Low recurring maintenance capex: once stabilized, ongoing maintenance capex requirements are minimal