STRATEGY
CIC Realty Capital, as the Sponsor of each investment, has developed and implemented rigorous processes and procedures that integrate the analysis of the real estate attributes, tenant credit and lease structure of each property that is considered for acquisition. The Sponsor believes this allows for the acquisition of properties that provides the most attractive risk-adjusted returns.
CIC Realty Capital’s primary investment strategy is to acquire, own and actively manage a diversified portfolio of single-tenant and multi-tenant, income producing assets, and medical-retail related tenants in prime locations throughout the United States, that are subject to long-term net leases. Where possible, we try to incorporate "impact investing". We believe in being good stewards of our planet, so we focus on environmentally friendly, socially conscious, and responsibly managed real estate investments.
CIC Realty Capital pursues investments by utilizing its extensive expertise acquiring and managing compelling real assets in prime locations that meet CICRC’s acquisition criteria. CICRC is currently targeting investment opportunities principally in Southeastern Massachusetts and Rhode Island due to the current pricing dislocation. In addition, CICRC will target certain medical- retail assets in the Eastern and Midwestern US markets, and certain other major MSA’s across the country.
For each property, the analysis primarily focuses on evaluating the following:
REAL ESTATE
ATTRIBUTES
Within the context of the relevant market and submarket, managers evaluate the suitability of the property for the specific business conducted there and the industry in which the tenant operates, the prospect for re-tenanting or selling the property if it becomes vacant, and whether or not the property has expansion potential. Alternative uses are evaluated for each property, as well as other potential users and estimated replacement rents.
TENANT CREDIT
The Sponsor evaluates the tenant credit profiles by focusing on data and information specific to the tenant’s financial status and the industry in which it operates. For the tenant’s financial status, evaluation of the tenant’s current and historical financial statements (to the extent available), capital sources, earnings expectations, operating risks, and general business plan. For the tenant’s industry, relevant industry trends are evaluated and the tenant’s competitive market position.
LEASE STRUCTURE
The Sponsor evaluates the tenant and landlord obligations contained within existing or proposed leases, as well as the remaining lease term, any contractual annual or periodic rent escalations and the existence of any termination or
assignment provisions.
TENANT RETENTION
The Sponsor assess the tenant’s use of the property and the degree to which the property is strategically important to the tenant’s ongoing operations, the tenant’s potential cost to relocate, the supply/demand dynamic in the relevant submarket and the availability of suitable alternative properties. Tenant retention tends to be greater for properties that are strategically important to the tenant’s business and where the potential costs to relocate are high.
