Fairchild Realty Investments
Investing in value added and opportunistic real estate transactions maximizing cash flows & capital gains
Fairchild Realty Investments is a vertically integrated real estate investment arm of The Fairchild Companies. FRI's focus remains to responsibly invest our client’s capital into very targeted and specifically defined real estate backed transactions which generate superior risk adjusted returns. Our investment horizons vary with short term gain options as well as longer term cash flow generating strategies. Only invest in assets that we have intimate knowledge and control. And, Invest into real estate that is undervalued or fills a specific void in our targeted marketplace. We are guided by the time tested investment principles of capital preservation which can be achieved by developing and maintaining strict investment policies and scrutinizing acquisition and operating expenses ultimately maximizing cash flows and investment returns. Our investors benefit from our local market expertise and industry experience which can help mitigate risks and produce greater risk adjusted returns. Our complete team of professionals has work together for decades to bring comfort to sometimes nerve racking real estate process. From asset acquisition to repositioning to lease up and/or disposition the FRI team takes the worry out of investing in real estate by applying its proven principles and reporting the results in a transparent and consistent fashion. Better planning usually results in a better outcome, and at FRI, we feel this holds true for realty investments.
Investment Strategy
For investors seeking exposure to the private real estate markets, FRI offers core, value-add and opportunistic investment strategies via debt and equity investment vehicles. Each client's investment strategy and the implementation of that strategy are guided by FRI’s experienced team of industry professionals who possess investment management experience. Fairchild Realty Investments (FRI) focuses on the acquisition, development, and repositioning of coastal properties in the Southeastern United States. FRI’s success stems from its intimate knowledge of locals markets.
Transaction Level
• Acquire below replacement cost
• Seek motivated sellers & proprietary
off-market transactions
• Leverage local operating partner
• Market knowledge & operational expertise
• Alignment of interests; appropriate incentives
• Utilize leverage to maximize overall returns
Property Level
• Improve overall property condition,
stabilize property, reduce risk
• Increase net operating income & cash flow
• Transform to core property
• Sell stabilized asset at higher multiple
Management Level
• Extensive due diligence
• Quality project management
• Asset management
• Market planning
• Professional maintenance
• Accounting/investor reporting
Core Strategy - low risk: operating and substantially leased properties in strong markets; diversified across the five major property types: office, retail, industrial, multifamily residential and hotel. Properties have low-to-moderate leverage structures and income typically generates approximately two-thirds of total return.
Value-Add Strategy - risk levels are somewhat more elevated: properties require higher capital investment for re-positioning, re-leasing or enhancement. Leverage is used to enhance returns. Total return over the holding period is generally expected to be divided equally between income and appreciation.
Core
Core Plus
ValueAdd
Opportunistic
Core-Plus Strategy – moderate risk: core properties in terms of type and locations, with slightly higher elements of risk including somewhat greater leverage, lease rollovers or modest capital investment requirements. Appreciation is expected to account for approximately 40% of total return.
Opportunistic Strategy – higher risk investments with the potential to achieve higher levels of return over the holding period: new development projects and less-traditional property sectors. Assets tend to be highly leveraged with greater leverage risk.
FRI’s Current Offerings
The FRI team acquires well-located, fundamentally sound assets in the Southeastern U.S. Investing across the risk/reward spectrum in core, value-added, and opportunistic investments, provides a customized investment approach to aligning investor objectives with the appropriate strategy and investment vehicles. Below please find the FRI current offerings which are currently in the capital raise stage.
Opportunity:
Type:
Location:
Description:
Transaction Size:
Property type:
Risk profile:
Disposition period:
Total Returns:
Investment type:
Jewel Box Homes
Opportunistic, Residential Ground Up Development
Palmetto Bluff, South Carolina
FRI’s ground up strategy for sale in Palmetto Bluff utilizes top building professionals to construct and sell single story Coastal Craftsman designed homes. The target audience is the affluent buyer of Palmetto Bluff purchasing primary and/or second homes. The building boom at the Bluff currently with features 52 homes under construction with a distinct lack of existing for sale inventory. FRI will build and design smaller, efficient and sustainable homes for immediate sale for a price that rivals the current new construction.
$750,000 - $1,250,000
Single family Coastal Craftsman primary or vacation homes
Opportunistic
18 months
15 - 18%
Senior Debt, Equity, Preferred Equity, Joint Venture
Opportunity:
Type:
Location:
Description:
Transaction Size:
Property type:
Circumstance:
Risk profile:
Disposition period:
Total Returns:
Investment type:
Ocean Orientated Vacation Property Rental
Value-Add, Residential Vacation Homes
Ocean Oriented Areas of Hilton Head Island, South Carolina
FRI indentifies suitably located vacation properties that are in need of minor repositioning. The strategy focuses on ocean orientated properties on Hilton Head Island. The unique strategy focuses on acquiring and correctly repositioning properties for maximum rental income for short to mid-term. Combining weekly rentals in high demand periods with monthly rentals in “shoulder seasons” provides diversification of rental opportunities maximizing annual cash flow. FRI provides turnkey rental and maintenance services along with full investment reporting.
$125,000 - $850,000
Smaller single family and condominium properties
Property needs only minor repair and is in need of an overhauled rental and maintenance program
Value add
5 years
12 - 15%
Senior Debt, Equity, Preferred Equity, Joint Venture
Sea Pines Renovation & Sale Program
Value-Add, Residential Properties
Sea Pines Plantation on Hilton Head Island SC; close proximity to ocean or Harbour Town.
The Sea Pines Renovation of FRI focuses on opportunistic real estate situations that require minor repairs including interior/ exterior rejuvenation. FRI’s team of real estate professionals focuses on Sea Pines Plantation searching for properties near the ocean or Harbour Town. Providing a turnkey package, FRI controls all the steps of the investment process: acquisition, design, renovation, with ultimate disposition all under one roof. Fairchild’s vast network of local banks and real estate professionals locate value added or opportunistic deals before they appear as listing to the general market.
$125,000 - $550,000
Single Family detached and select condo projects
Seeking bank owned properties and properties transferring from one generation to anotheronly minor repair and is in need of an overhauled rental and maintenance program
Value add
6 months
18 - 22%
Senior Debt, Equity, Preferred Equity, Joint Venture
Opportunity:
Type:
Location:
Description:
Transaction Size:
Property type:
Circumstance:
Risk profile:
Disposition period:
Total Returns:
Investment type:
The FRI Strategic Advantage:
The success of Fairchild Realty Investments can be attributed to the following key principles employed over decades of investment and development experience:
Long term Industry Relationships:
By utilizing Fairchild’s extensive bank capital and real estate networks FRI can generate attractive business opportunities, including sourcing investment transactions, acquiring properties, identifying joint venture partners, providing debt capital, and securing leasing, management and other services.
Experience, Knowledge, Expertise:
FRI’s management team brings decades of extensive experience in creating extraordinary value for its investment partners
Commitment to Transparency & Timeliness in Client Communications:
The FRI team understands the importance of transparent and timely investment communications. Sharing news with all clients and partners promptly and efficiently continues to be one of our key goals. Transparency fosters a trusted manager-client relationship for the long term.
Market Specific Investment Strategies:
FRI implements successful investment and operating strategies typically at the very beginning of a particular market cycle or trend, thereby providing its investors clear strategic advantages.
Capital Markets Expertise:
FRI closely tracks the real estate debt and equity marketplace and has successfully completed a variety of complex real estate capital markets transactions. FRI utilizes its extensive capital markets expertise to pursue the optimal capital structure for each investment.
Optimal Operating and Management
Structure FRI has an efficient operating and management structure, with a focus on proactive asset management. All parties within the transaction have aligned interests to maximize the asset specific objectives.