Colony Realty Partners

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Investment StrategyCRP targets real estate investments that have in-place cash flow, or the ability to put cash flow in place in the near term, that may be under-valued or demonstrate prospects for near and/or mid-term value creation through CRP's rigorous asset management.

Emphasis on Portfolio Diversity
One of the keys to the success of CRP's investment strategy is the presence of multiple measures of portfolio diversity, which helps minimize exposure to downturns in particular product types, industries and regions. Accordingly, each fund is strategically constructed to include maximum diversification based on the following:

  • Asset Class Diversification - CRP targets an asset class mix of approximately 40% office, 40% industrial, and 20% multi-family and retail properties.
  • Regional Diversification - CRP targets investments in 22 major metropolitan markets.
  • Tenant Diversification - CRP mitigates overexposure to sectors of the economy by tracking its tenant base by NAIC codes.
  • Staggered Lease Expirations - CRP reduces the risk of concentrated lease rollover in any given year by staggering lease expirations across the portfolio.
  • Investment Diversification - CRP focuses on small to medium sized investments averaging $30 million. Each fund will have dozens of separate investments further diversifying exposure to any one transaction.

Strong Foundation on Cash Flow
As one of the cornerstones to the Investment Strategy, current cash flow is expected to generate approximately two-thirds of the net present value of the total return for the entire fund. CRP believes the ability to collect and manage current and more predictable operating cash flow, as opposed to primarily relying on future capital appreciation, greatly reduces the risk profile of its real estate investment.