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Exit Strategy
We plan to hold these investments for as long as it remains financially responsible to do so. However, our time horizon for each of these investments is expected to be five to seven years. Improvements in market conditions may create a sale opportunity earlier than anticipated.
Factors affecting the Hold vs. Sell decision:
- Current market for real estate prices where property located;
- Direction of cap rates for similar properties in the market;
- Overall annual returns of the property;
- Changes in the financing market;
- Relation of projected market rates to government contract lease rate; and
- Goals and motivations of the tenant as lease nears end of term.
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