Freeman Capital Management’s investment and management philosophy is based on five guiding principles, including:
- The best way to maximize quality and cost efficiency is to take a hands-on approach to all aspects of management. All key management services are provided in house, including property, project and asset management.
I. Fully Integrated Management
- We focus on the fundamentals when analyzing an asset for acquisition. This means we underwrite assets based on their actual cash flow rather than relying on speculative market-based appreciation to hit a target investment return. This conservative approach allows us to keep risk very low and still achieve generous returns.
II. Cash-Flow is King
- We target opportunities where we can use our expertise and market acumen to create a significant increment of value in an initial short-term period. Once the property is stabilized, we hold it and continue to grow the operating income. When market conditions provide an opportunity for a substantial return, only then do we consider selling the asset.
- Our basic underwriting criteria is to stabilize at or below replacement cost, at an 8% to 9% capitalization rate based on historical average to below market rental rates. Growth in the industrial sector should continue to thrive as the market for retail changes from bricks and mortar to online sales. We continue to focus on opportunities in both Boulder, Colorado and Chicago, Illinois.
IV. Long Term Conservative Hold
- Every component of our management and decision-making is structured to promote and protect the best interests of our investment partners. This approach is consistently reflected in our commitment to excellent communication with our investors on current market conditions, building operations, and partnership financials.