Dominion Diversified Real Estate Investments was founded in 2001 as an entrepreneurial and opportunistic real estate investment mechanism for individuals and entities desiring to participate in the ownership of investment grade or otherwise quality real estate assets. Since 2003 the Managing Partners of Dominion Diversified along with other co-managing partners have sourced and closed on over $200,000,000 worth of commercial real estate.
Dominion Diversified desires to diversify its product mix and respond to on going purchase and development opportunities presented by the purchase & sale cycles of both private and public owners of institutional grade real estate holdings .
By purchasing or developing select assets of differing products types, in varying geographic areas, the investment risk associated with real estate is reduced. Additionally, projected returns should be less influenced by downturns in the economy or any given market segment. The investment entity seeks to attract a select group of both international, local, and regional investors that desire to increase their current holdings or diversify their investment mix.
Participating in Dominion Diversified’s investment selections should afford individuals as well as institutions the chance to co-invest in a limited capacity in both large and small acquisitions, thus gaining economies of scale and limiting their personal or institution’s monetary exposure.
The investment enity’s objective is to selectively seek opportunities and then quickly and thoroughly analyze assets that can be purchased using equity to cover at least 20 percent of the total cost and yield at least a 7-8% per annum cash on cash return. The above parameters are base line minimums and the overall objectives are to obtain yields substantially above the stated minimum return objective. While the investment entity should be prepared to place the above stated equity into any given transactions, the equity requirement could vary depending on the overall transaction structure and lender requirements.
While the investment entity has the base line minimum return expectations, it is anticipated that much greater (15-25 percent) returns may be achieved depending on variables such as purchase price, leverage, interest rates, leasing, development cost, exit timing and general market conditions.
Each asset purchased or developed will be analyzed from a macro and micro perspective in an attempt to forecast both short and long-term performance potential. The total initial equity contributions of the investors in each investment will be determined on a case by case basis a properties are sourced and placed under contract.
As it now stands each purchase to date has been treated as a stand-alone investment, while some investors may elect to invest in multiple projects.
Our strategy is simple – buy or develop properties carefully, pay close attention to them and anticipate problems and opportunities so we can act quickly. Our approach centers on careful market analysis followed by decisive action to take advantage of prevailing conditions and the resulting opportunities.
DDREG principals bring over 50 years of combined real estate experience and complementary skill sets to directing the firm’s investments and maximizing each investor’s return on equity across a variety of asset types and investment strategies. The principals’ collective experience and entrepreneurial attitude allow the firm to capitalize on a range of opportunities inherent in certain markets. All investments are originated, structured, capitalized, and managed by DDREG, ensuring close coordination of all value-creation activities.
We are seeking real estate that ranges in value from a minimum of $3,000,000 and upward to $45,000,000 per asset purchased. On larger purchase opportunities the managing member may use the equity base of the local investors as a platform to attract institutional equity in significant amounts to co-invest in a transaction.
The investment entity will seek well-located assets varying in product type that are determined to meet the investment objectives. The primary focus will be directed towards high-end specialty retail and grocery food-anchored retail, multi-family student housing, office, hotels, medical offices, and select land and ground-up development opportunities. Any given asset or opportunity will be closely scrutinized as to its short and long term return potential.
The primary geographic focus will include first and second tier cities in Virginia, North Carolina, South Carolina, Georgia, and Tennessee. On a case-by-case basis assets outside of this geographic focus may be considered.