For many years, Milan has invested only its own capital or the capital of closely related parties in its deals. Milan and its principals continue to be interested in deploying capital into real estate opportunities, but in an effort to leverage its capital, its expertise, and its personnel, Milan now allows outside investors to participate, alongside Milan’s principals, as joint venture equity partners.
Identification of market trends
For years Milan has proven itself to be ahead of the curve in identifying trends in the real estate investment cycle and in using this skill to identify and acquire quality real estate opportunities. We sold apartments near the top of the market in the late ‘80s only to buy them back for less than half what they sold for after the savings and loan collapse a few years later. We bought shopping centers in southern California before southern California retail became one of the most desired asset classes among real estate investors. In 2003 and 2004, we were buying office buildings with significant vacancy issues in anticipation of the fundamentals improving due to a stronger economy. Between 2001 and 2004 Milan acquired nearly 1 million square feet of commercial property in good locations in southern California for an average price per foot of only $90—approximately 1/3 of the average sales price for these commercial buildings in 2007.
Sometimes the best decision is to do nothing
In 2005, 2006, and 2007, Milan significantly reigned in its acquisition activities, as the real estate market, particularly in southern California, became overheated and overleveraged. With significant cash on hand and low debt levels, Milan Capital Management intends to be around not simply to weather the storm, but to profit from the turbulent seas. Abundant opportunities will present themselves to the patient and well-capitalized investor—but only if that investor is not only willing to execute on an acquisition, but also is able to execute on a strategy.
Execution of a business plan
Each purchase made by Milan is more than a simple acquisition. It is the first step towards execution of a well thought out business plan. Milan’s asset management, development services, and property management professionals work closely together starting from before the closing in order to design and execute the strategy that has been laid out for each project. The goal is always achievement of maximum income over the long term. Milan never relies simply on the market to add value for its investors. It looks for properties where value can be increased through hard work.
Recognizing opportunity, adding value through execution
Please see the Case Studies for specific examples of Milan’s comprehensive approach to real estate investing, and then contact Milan’s Investment Services team to discuss ways in which you can become a partner in our successes.
Some of the services Milan provides to its partners include:
- Investment in particular deals
- Investment in a larger fund
- Joint venture equity for smaller developers and operators
- Access to debt and equity sources
- Development project management
- Entitlement services
- Credit enhancement
- Public and Government Relations
- Tenant improvement projects
- Unconventional ownership structures