Implementation

 

Risk Mitigation

Hillcrest invests on an unlevered basis to protect the integrity of the projected net returns.  Hillcrest seeks investments that are appropriately valued, are sponsored by experienced owners with demonstrable track records, and have executable business plans with multiple exit strategies. The following are key tenets of Hillcrest’s investment approach:

 

  • Real Estate First:  we will only consider a financing opportunity if we are comfortable with the real estate from an equity perspective

  • Structure:  we focus on downside protection and ensuring that Hillcrest has the ability to access the asset in the event of a problem to protect the entire capital stack

  • Investment Size:  we focus on middle-market transactions (whole loans between $25.0M and $200.0M; subordinate debt between $8.0 M and $50 M) where we have the greatest ability to add value

  • Complex Problem Solving:  we utilize our 30+ years of equity and debt ownership and operating expertise for the benefit of our investors, our sourcing partners, and our borrowers

  • Sourcing Partnerships:  we partner/co-invest with banks, financial institutions, lending agencies, and direct with owners/operators to provide creative financing solutions

Investment Structure

Hillcrest invests across the credit spectrum in senior mortgages, mezzanine loans, and preferred equity investments. Hillcrest provides financing for stabilized assets with current cash flow, transitional assets that require more time to achieve targeted business plans, distressed assets that require restructuring, and distressed borrowers that require refinancing.

 

Geographic & Property Sector Targets

Hillcrest primarily targets the top 25 greater Metropolitan Statistical Areas (MSAs) in the U.S. and their emerging submarkets. Hillcrest’s target markets are benefiting from shifting demographics, job growth due to distinct economic drivers, excellent knowledge bases, and quality of life.  We focus on office, multi-family, retail, hotel, industrial, mixed-use, and select specialty property sectors.