Our smartest business move is to bring the best combination of talent, expertise, and partnerships to every opportunity, and that includes investors who share in the vision, business plan, and operational structure of the deal.
Investment Focus
We focus on core/core plus, value-add and opportunistic real estate investment opportunities across the residential and mixed-use asset classes in strong gateway cities and in high growth and emerging markets with strong real estate fundamentals, high density, population growth, and dynamic economies and in communities at the center of or near the path of progress.
For core assets, we consider the economic exposure of the local area whereas for core plus assets, we emphasize a modest value-add approach.
Our value-add acquisition strategy seeks quality properties where we can identify a physical, operational, or financial improvement opportunity that we can address through active management that will eventually yield more aggressive income growth.
Our opportunistic deals focuses on thematic investing for ground up development and adaptive reuse projects.
Investment Principles
Icon Heritage constantly has one eye on the future and focused on well-developed investment strategies based on thorough research and analysis.
Our core investment principles emphasize value creation by de-risking complex opportunities, nurturing partnerships with top tier operators, structuring downside protection, carrying out diligent underwriting and seamless execution, committing to sustainability and ESG standards, and most importantly, creating strong, long term alignment with investors with full transparency between our team and investors.
What we avoid are market bets, widely marketed and competitive situations, core, low yielding assets with no angle for Icon Heritage to add value, misaligned operating partners and highly speculative investments.
Risk Mitigation
We seek to manage risk through prudent use of leverage, effective capital management, retaining a diversified portfolio of assets and collaborating with strategic partners for large or complex developments.
Absolute return is our philosophy. It means we make no compromise when analyzing investments and seek to apply our judicious acquisition process to assets and operate with integrity to preserve and grow our investors’ capital.
Geography
Combining detailed regional knowledge, on-the-ground presence through local offices and partnerships, and a deep understanding of the real estate marketplace, we have widened our investment footprint across the Southeast U.S.
We are also able to capitalize on valuable regional and local investment opportunities through our alliance network with key strategic partners.
Partnerships
We take a partnership approach to real estate investing – both at the asset level as well as at the platform / entity-level. This approach has allowed us to create significant enterprise value beyond the underlying value of the assets.
Our ideal partners bring strong programmatic experience to unique or complex investment opportunities and also allow us to expand our capacity for larger undertakings.
Investment Approach
We are a rigorous and disciplined value-oriented manager and significant sponsor of all of our deals. Through our fundamental analysis combined with detailed regional knowledge, on-the-ground presence and hands-on asset management, we target only strategically appropriate investment opportunities and then take a considered institutional approach to investing, guided by several key principles:
Yield Accretion
Potential for Asset Growth
Risk Adjusted Return
Disciplined Exit Strategy
Value-adding Opportunities
Selective AcquisitionYield AccretionProperties to be acquired should have either a high existing rental income or the potential for rental income growth, reduction to operating costs and/or occupancy improvements enhancing tenant mix.
Potential for Asset GrowthWe identify asset-specific investment opportunities which have the potential to optimize asset performance and maximize rental growth opportunities. This also includes maintaining strong relationships with our tenants, operating partners and service providers.
Risk Adjusted ReturnOur aim is capital preservation, creating value and producing above-market, risk-adjusted returns benchmarked on industry standards. We do so through diligent underwriting, structuring and executing various value enhancement and exit strategies and delivering a business plan that enables us to invest through market cycles.
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Disciplined Exit StrategyWe believe that identification of multiple exit strategies prior to each acquisition and continual evaluation of market dynamics impacting such strategies are fundamental to realizing value in a timely manner.
Value-adding OpportunitiesOur acquisition strategy emphasizes opportunities where we can create significant value via asset repositioning, income and capital enhancement initiatives and enhanced management. This also often includes environmental and sustainability improvements.
Selective AcquisitionWe are continually evaluating and reassessing our target markets to determine the geographies, sectors and investment themes that we believe will produce optimal returns on a risk-adjusted basis.
Asset Management Strategy
Our Asset Manager, working closely with the Property Management Team and Operator, will proactively manage its properties to achieve the following goals:
Sustainability Focus
Maximize Rental Income
High Occupancy Levels
High Tenancy Renewal Rates
A Quality and Diversified Tenant BaseSustainability FocusBuild a strong corporate culture that integrates sustainability and climate change considerations into decision-making processes. Such a culture will create sustainable business growth and long-term values for our stakeholders.
Maximize Rental IncomeOptimize the rental income from each tenancy and, where possible, augment rental income through operational improvements, asset enhancements, and turnover rent.
High Occupancy LevelsKeep occupancy levels high by maintaining high-quality services and technical standards, capitalizing on targeted tenants’ requirements, and a strong tenant mix.
High Tenancy Renewal RatesMaintain high tenancy renewal rates through proactive tenant relationship management and anticipation of future tenant needs. These measures will minimize rental losses due to downtime and lead to lower expenses and agency fees incurred for new tenancies.
A Quality and Diversified Tenant BaseIcon Heritage Fund 1 is a 506(b) fund targeting value-add multifamily assets.
Co-invest with confidence.
Icon Heritage Fund 1 is a 506(b) private equity real estate fund targeting value-add multifamily assets largely in the Southeastern U.S. Our ‘funds of funds’ model allows investors a more significant risk mitigation and diversification strategy and has a target of purchasing 5-10 assets over the life of the fund. The fund size is $50 million.
Investing opportunities are available to institutional investors, family offices, individuals, SD-IRA and 401K.
Investment Criteria
Co-Investment Range
$30K-$20M
Investment Type
Value-add multifamily
Asset Type
150 - 400 Units, 1980 - 2010 Vintage, B/C+ Class
Markets
Florida and Georgia
Partners
What do we look for in Co-GP and programmatic partner?
- Proprietary deal flow
- Geographic expertise and on-the-ground presence
- Acquisition Range: $25M-$100M
- Rehab/retrofit/reposition plays
- Significant financial capacity
- Business plan alignment
Co-Investors
Why invest with us?
- Preferred Return: 7% - 8% (paid quarterly)
- Target Investor Return: 12% - 15% Net IRR
- Minimum 1.25x equity multiple
- 6% - 8% CoC target (17% - 23% including sales proceeds)
- 2% Asset Management Fee
- Non-accredited investors allowed
- ACH, Credit Card, Wire, 401K and IRA accepted