Joint Venture Development Criteria
Vista Real Estate is actively pursuing value-added real estate development and investment opportunities with experienced, well-capitalized partners. We will entertain joint venture development structures with land owners, developers, real estate operating companies, retailers, hospitals, doctor groups and other value-added service providers; we will also consider master or ground lease opportunities.
Our primary structuring goal is to appropriately align our interests with those of our joint development partners. In doing so, we are willing to tailor our transaction structures to fit the unique needs of each situation, including the use of preferred equity, mezzanine capital and pari passu joint venture interests. We will typically target the use of 60-75% debt leverage in achieving our desired investment returns. Our general development criteria are described below:
Product Type/Size: Retail, medical and mixed-use projects with a retail component in a size range of 20,000-400,000 square feet in high-traffic / underserved urban and suburban locations throughout the U.S. The product type category can include grocery-neighborhood, power-community, specialty-Main Street, mixed-use, lifestyle, medical campus or redevelopment.
Transaction Size: Targeted investment sizes ranging from $2 million to $50 million per transaction, with total project values ranging from $5 million to $100 million. Our recent pipeline activity has included projects ranging in value from $5 million to $100 million.
Return Parameters: Investment / development opportunities offering unlevered project cash returns starting at 10% (as stabilized), with targeted internal rates of return on equity of 14% or greater.
Location: Seeking opportunities throughout the U.S. We will consider all major urban and suburban markets, as well as secondary markets with high barriers to entry. Our recent deal flow includes projects in Texas, Arkansas, Indiana and Colorado.