STRATEGY



STRATEGY



INVESTMENT FOCUS

Black Salmon seeks to acquire stabilized, investment grade assets that are cash flow positive from day one. Our team analyzes opportunities throughout the commercial, industrial, hospitality and senior housing sectors in major markets around the United States. Technology, as an agent of change in the real estate sector, and as an engine of growth in the US economy, is the megatrend that steers Black Salmon’s strategy.


MARKETS


Black Salmon identifies which markets and submarkets are fueled by leading trends. The group seeks out and studies opportunities in areas where population and economic growth are strongly supported by proximity to major metropolitan areas and the presence of top tier educational institutions.


MARKET SELECTION CRITERIA


  • TECHNOLOGY
  • POPULATION GROWTH
  • LIFESTYLE
  • EDUCATION
  • WEATHER

MARKETS OF INTEREST


TYPES OF DEALS

INVESTMENT TYPECORE
INVESTMENTS
CORE PLUS
INVESTMENTS
VALUE ADD
INVESTMENTS
OPPORTUNISTIC
INVESTMENTS
Probability of:

Risk of Loss
Annual Cash Return $$$$
Low
$$$$
High
$$$$
Low
$$$$
None
Annual IRR$$$$
Low
$$$$
Low
$$$$
Medium
$$$$
High
LeverageLess than 50%50 - 65%60 - 75% Over 70%
Occupancy Rate90 - 100%80 - 95%Less than 80%0 - 50%
Asset StrategyBuy & HoldLight Renovations
Re- Lease Strategy
Heavy Renovations
Major Retenanting
Ground Up Development
Major Rehab
Stable TenantsBulk of Rent RollPartialFew / NoneNone
Hold Period


SECTORS


  • Black Salmon invests in markets with high levels of population growth. The change in today’s workforce and their location preferences has had an impact on commercial real estate. In the next decade the world population is projected to grow over 1 billion, and most of these people will live in cities. Urban areas have re-emerged as hubs of innovation and entrepreneurship.

    Black Salmon seeks urban areas with the top universities that have highly reputable programs and large enrollment classes, that manage to retain talent through integrative employment initiatives.

  • The firm focuses on markets where big tech companies are headquartered. These companies tend to attract numerous specialized small businesses.

    TARGET

    • Class A and B office buildings.
    • Urban and suburban areas experiencing consolidation and growth.
    • Tenants with medium credit risk, with or without risk classification.
    • Low to intermediate vacancy.
    • $30M – $150M transactions.


  • Healthcare is the fastest growing sector in the U.S. economy, accounting for 17.9 percent of the country’s GDP. With an increase of baby boomers retiring every day, the ‘silver tsunami’ is becoming a major game changer in real estate due to a constantly-increasing need for quality senior housing.

    Black Salmon analyzes senior housing opportunities in markets with an aging population that offer services for the needs of the elderly. The ideal location for the senior housing product has advantageous weather, offers security and is close to urban areas.

  • The senior housing industry has proven itself to be not only a defensive investment during an economic downturn, but it has also produced real estate industry leading returns during periods of economic upturn.

    TARGET

    • Class A and B+ senior housing assets
    • Markets with above national average age and high concentration of adults 65+
    • Independent and Assisted Living properties