Investment Strategy
Our disciplined approach focuses on:
-
Value-Add Properties: Identifying underperforming assets with significant upside potential
-
Strategic Market Selection: Targeting high-growth metropolitan areas with strong economic fundamentals
-
Risk-Adjusted Returns: Balancing capital appreciation with consistent cash flow
-
Active Asset Management: Implementing operational improvements to maximize property value
Focused Approach
95%
Housing
The national rental housing occupancy rate has maintained above 95% for the past decade, with urban multifamily properties experiencing a 3.8% average annual rent growth, outpacing inflation by approximately 1.2% annually.
10.6%
Self Storage
Self-storage has delivered the highest risk-adjusted returns of any commercial real estate sector over the past 25 years, with a 10.6% average annual total return and the lowest volatility among all major property types according to NAREIT.
78%
Medical Space
Healthcare real estate has experienced 78% lower default rates than other commercial property types during economic downturns, with life science properties commanding premium rents averaging 32% higher per annum.
3x
Industrial
E-commerce fulfillment requires approximately 3x more warehouse space than traditional retail distribution, driving industrial absorption to record levels with over 450 million sq ft of new space demanded annually since 2020.
Investment Thesis
KBM Real Estate Fund targets diversified commercial real estate assets across four strategic sectors selected for their resilience, growth potential, and stable cash flow characteristics:
Housing
Essential housing infrastructure providing stable occupancy through economic cycles. Demographic shifts toward renting and urban migration sustain demand. Operational efficiencies at scale and multiple income streams from a diversified tenant base minimize vacancy risk.
Self Storage
Recession-resistant asset class with consistent cash flow and minimal management requirements. Driven by urbanization, downsizing trends, and retail e-commerce inventory needs. Quick lease-up periods and scalable operations support reliable returns regardless of broader economic conditions.
Medical
High-demand life science real estate driven by biotech innovation and healthcare research growth. Premium yields with long-term leases to established tenants. Specialized infrastructure creates barriers to entry, supporting sustainable rental premiums and occupancy rates.
Industrial
E-commerce and supply chain evolution driving unprecedented warehouse demand. Strategic logistics locations command premium lease rates with minimal tenant improvement costs. Flexible spaces adaptable to evolving distribution needs ensure long-term asset relevance and appreciation.