Strategy

Vertical Ventures’ strategy is to focus on supply-constrained markets in California, with an emphasis on second tier markets and ancillary submarkets within top tier markets. Vertical Ventures identifies well-located properties that it believes are under-valued or under-utilized, typically exhibiting some form of distress. Target investments for Vertical Ventures are frequently transitional and value- add opportunities, involving lease-up, repositioning, rehabilitation, redevelopment and recapitalization activities.

Vertical Ventures’ team seeks to be appropriately risk mitigated through a rigorous due diligence process that ultimately ensures that the risks of each potential acquisition is well understood and justified based on overall expected returns. During due diligence, Vertical Ventures forges a comprehensive asset plan wherein operational, development (as appropriate), marketing and financial components are uniquely structured in order to effectively realize the full potential of the asset. Vertical Ventures seeks to prudently leverage its capital in a structure that complements the operating strategy while maximizing the return to equity. Once an asset is acquired, Vertical Ventures executes the specific asset plan and through its “hands-on” approach, continually assesses the plan and property performance.

The team’s strong financial, legal and market expertise allow Vertical Ventures to identify, evaluate and execute investments in loans and other distressed securities backed by commercial properties, in addition to making direct investment in properties. Vertical Ventures works with its capital partners to achieve their strategic goals and investment return objectives through successfully sourcing, structuring, and executing repositioning plans related to the transitional and value-add real estate opportunities it acquires.