Investment

Black Salmon identifies which markets are fueled by leading trends. Technology, as an agent of change in real estate and an engine of growth for the U.S. economy, is one megatrend that steers Black Salmon’s investment strategy. The firm pursues opportunities in areas where population and economic growth are strongly supported by factors such as proximity to major metropolitan areas and the presence of top-tier educational institutions.

Types of assets

Office

The attractiveness of this asset class stems from cash flows which are backed by creditworthy tenants on long-term leases.

Healthcare

A constant level of demand allows the healthcare asset class to offer solid long-term fundamentals.

Industrial

This asset class is exhibiting record-breaking demand growth due to the rise of e-commerce.

Hospitality

Hospitality is a multi-billion-dollar industry with a wide variety of properties.

BSC 20 – Markets of Interest

Market Selection Criteria

Technology

Technology

  • • E-Commerce
  • • Artificial Intelligence / Machine Learning
  • • Robotics / Autonomy
  • • Virtual Reality / Augmented Reality
  • • Biotechnology
  • • Internet of Things (IoT)
  • • Blockchain

Economic drivers & business climate

Economic drivers & business climate

  • • Large talent base
  • • Presence of major corporations
  • • Pro-Business State and Local Governments
  • • Strong Net Absorption
  • • Startup & entrepreneurial culture
  • • Urban areas as hubs of innovation

Population Trends

Population Trends

  • • Job Growth
  • • Migration Patterns
  • • Population Growth
  • • Strong millennial population, today's largest workforce
  • • Requirements of an aging population

Education

Education

  • • Proximity to top universities
  • • Large levels of enrollment
  • • Post graduate opportunities

Lifestyle

Lifestyle

  • • Moderate cost of living
  • • Attractively priced real estate
  • • Activities and entertainment options
  • • Rise of the “Live, Work & Play” concept

Geography

Geography

  • • Weather
  • • Sunbelt
  • • Transportation Linkages

BSC REAL ESTATE STRATEGIES

Core Plus

Risk of Loss
Low
Dividend Yield
Medium-High
Annual IRR
Low-Medium
Leverage
50–65%
Hold Period
5-7 years
Asset Strategy
Light Renovations
Re- Lease Strategy

Value-Add

Risk of Loss
Medium
Dividend Yield
Low
Annual IRR
Medium-High
Leverage
50–65%
Hold Period
2-6 years
Asset Strategy
Heavy Renovations
Major Retenanting

Land Banking

Risk of Loss
Low
Dividend Yield
None
Annual IRR
High
Leverage
50–65%
Hold Period
1-5 years
Asset Strategy
Land Banking
Growth Potential

Build To Rent

Risk of Loss
Medium
Dividend Yield
Medium
Annual IRR
Medium-High
Leverage
50–70%
Hold Period
5-7 years
Asset Strategy
Ground Up Development
Major Rehab

Opportunistic

Risk of Loss
High
Dividend Yield
None
Annual IRR
High
Leverage
50–70%
Hold Period
5-7 years
Asset Strategy
Subperforming & Distressed
CRE Properties