Capital

Investment strategy

How MEI Capital Partners puts equity to work—measured performance, disciplined structure, and full-cycle asset leadership. Each section below draws from our investment focus methodology.

Investment strategy

MEI Capital Partners

Measurable performance on your equity

MEI Capital Partners puts your equity to work for you in a measurable way on investments made across the real estate spectrum. Using a value-added approach, we measure success by our performance. We measure performance by real “day one” returns on your equity invested and by long-term “future” capital appreciation on the real estate asset acquired. As managing partner of each asset acquired, our focus is on reaching your mutual short- and long-term goals, thereby continually earning your trust and confidence daily.

MEI offers its investment partners individual real estate investments in which a significant portion of the investor’s return is in the form of a current, continual, and definable cash flow. We acquire assets that achieve this objective while providing real potential for capital appreciation with minimal risk. Results are produced through skilled management of each real estate investment.

How we measure successPerformance

Focus

Underwriting to asset management

Two priorities on every opportunity

The focus of the MEI Investment Team is two-fold. First, the transaction must be structured so that an agreed-upon return on the invested dollars is generated from day one. Secondly, the real estate investment vehicle must provide realistic and achievable capital appreciation in the prescribed investment period without unacceptable risk. We are able to achieve this through leveraging 30 years of MEI’s real estate management and brokerage experience.

Our team of skilled real estate practitioners evaluates each investment property by subjecting it to a rigorous property-level underwriting, due diligence, and investment review process which enables us to identify and mitigate potential acquisition and ownership risks. The due diligence process includes asset-level and real estate market reviews, financial analyses, and legal and environmental assessments. The MEI team evaluates rent and sales comparables, engineering reports and leases, and conducts tenant interviews to complete a thorough analysis before closing a transaction. Through the deployment of industry best practices and the use of tailored documentation we are able to streamline and maintain consistency in the negotiation process with sellers. Our established methodology enables MEI to analyze, underwrite, and successfully close each transaction.

After closing a transaction, the team continuously monitors performance against established targets and manages assets on a proactive basis in order to maximize value. The Management Team implements a business plan, including budgeting, capital expenditures, tenant improvements, and financial performance. Part of MEI Capital Partners’ management philosophy is the continuous involvement of the partner responsible for acquiring an asset throughout such asset’s life cycle. Rather than maintaining separate acquisition and asset management teams, the MEI professional who sources a transaction will monitor and manage the investment from underwriting and due diligence during the acquisition process, to the leasing and repositioning of the asset during its holding period, and ultimately to the financing and sale (if applicable) of the asset when it is stabilized. MEI Capital Partners believes this asset management structure promotes team member accountability for investments and maximization of value.

The real estate investment opportunities that the MEI Investment Team focuses on range in acquisition value from $2 million to $15 million and include retail shopping centers, office buildings (low and mid-rise), industrial parks, and mixed-use residential in up-trending metropolitan markets.

Typical acquisition range$2M–$15M

Investment philosophy

Acquisition stage

Success starts at the basis

The MEI Investment Team starts to drive the success of the investment at the acquisition stage. At this stage, we pragmatically test a targeted real estate investment’s capability to achieve strict financial benchmarks. When NOI, cash flow, and capital appreciation indicate that these benchmarks can be achieved, then, and only then, do we entertain an acquisition structure followed by purchase negotiations that result in an acquisition at our targeted price. We believe that it is at this stage that the real estate investment’s future success is determined. Once acquired, we aggressively pursue the managerial and marketing steps that will lead to the successful investment returns and capital appreciation expected.

Decision gateUnderwrite first

Debt / equity

Capital structure

Balanced leverage

To facilitate most acquisitions, MEI utilizes a debt/equity structure that maximizes investor returns but does not cause risky operational financial concerns. In most cases debt is considered at levels where positive leverage adds to short-term cash flow enhancement yet does not hinder long-term capital appreciation.

ObjectivePositive leverage

Investment management

Execution

Processes refined over 30 years

The MEI Investment Team relies on efficient, repeatable real estate management and marketing processes developed over 30 years as an industry leader. MEI requires its management and brokerage teams to be college educated and to acquire professional designations such as the CPM®, RPA®, and CCIM®. While the Investment Team manages the risk/reward aspect of the investment, they work closely with management and marketing to ensure the efforts and decisions made at these levels most effectively and efficiently drive the desired investment returns. In this way the investment strategy conceived is most effectively implemented, thus ensuring the greatest possibility of success.

CredentialsCPM® · RPA® · CCIM®

Separate accounts

Custom mandates

Institutional & private capital

For both our private families and institutional investors, MEI Capital Partners acquires attractive investment real estate assets on a per-investor basis.

Acquisition profile

Locations: major emerging markets
Holding period: determined by investor financial requirements
Property types: office, industrial, retail, and mixed-use residential
Asset management: continuous oversight aligned with the business plan
Equity requirement: $2M–$15M
Financial conditions: existing cash flow with definable upside potential
Tenant mix: single- and multi-tenant users with a proven history of financial success

Equity program$2M – $15M

Track record

MEI Real Estate Services

A history of success

For over 30 years, MEI Real Estate Services has been adding value to real estate investment portfolios of pension funds, trusts, capital funds, and private investors. The professionals at MEI have a profound understanding and expertise of the nuts and bolts of property management and marketing. Our unique brand of forward-thinking management and marketing combined with the ability for seeing and realizing the future value of a real estate investment has set it apart from other firms. Our firm not only develops management strategies that work, but also successfully deploys these strategies to achieve ownership objectives time and again.

Experience30+ years