Investment Criteria

Disciplined investment underwriting focused on properties below the institutional range, located in growing or supply-constrained markets throughout the United States. Target assets feature below market rents, owner mismanagement, attractive price per square foot below replacement cost, vacancy, and rollover risk.

  • Direct source of capital
  • Facilitate acquisition or refinancing, DPOs, asset repositioning
  • Quick funding available
  • Direct investor

Value and Impact Strategy

  • Core-plus
  • Value-add
  • Opportunistic
  • Stabilized
  • Multifamily, student housing, manufactured housing, affordable housing, flex/industrial, office, medical office, retail
  • Location quality: A+ to B-, land constrained areas preferred for long term holds
  • Funds typically secured by sponsor’s ownership interest
  • Funds are non-recourse (subject to typical carve-outs)
  • Minimum term 2 years, up to 10 years
  • Pricing based on risk
  • Investment size $3 million to $9 million with total capitalization approximately $15 million to $45 million
  • Prepayment may be subject to minimum multiple
  • Fee Equity
  • Joint Venture Equity
  • Preferred Equity
  • Mezzanine Loans
  • First Deed of Trust Bridge Loans

Credit Strategy

  • Value-add acquisitions
  • Refinancings and recapitalizations
  • Conversions and renovations
  • Lease-up or upcoming rollover
  • Quick close and special situations
  • Note purchases and participations
  • Multi-family, student housing, industrial, retail, office, self-storage, hospitality, net lease, niche/ specialty
  • Location: Nationwide; with a focus on primary and secondary markets
  • Loan Amount: $5-$30 million
  • Non-Recourse (subject to standard industry carveouts)
  • Term: 2-5 years
  • Minimum Rate: 7.0%
  • Fixed or floating rate
  • Amortization: Interest only
  • Prepayment: Permitted, subject to yield or spread maintenance
  • Reserves: Capex, leasing, interest, and operating reserves may be structured
  • First Mortgages
  • B-Notes
  • Mezzanine Loans
  • Preferred Equity

*The information presented above is for illustrative purposes only and is not binding on Kairos, its associates, officers, or investors and is to be used for discussion purposes only. All terms outlined herein are subject to change at any time and without further notification.

Originations and Acquisitions

Justin Salvato
Partner

Riccardo Lemos
Investment Manager

Nick Krueger
Credit Strategies, Associate Investment Manager

 

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