The investment activities of Colo Development Partners are built upon the following principles:
Local Knowledge: One of the biggest advantages to purchasing or building an asset is knowing the true market conditions and values. We know what areas are thriving and those that struggle. We know what product types are doing well and those where demand has subsided. We know what capital improvement projects are proposed or underway and how they may impact a property – positively or negatively. This knowledge is powerful for an investor.
Experience: Two questions should be asked before any investment decision: “Can we do this?” and “Should we do this?”. The second question of “Should we do this?” is experience. Our team has performed numerous real estate transactions and utilizes our prior deal experience coupled with extensive financial underwriting to answer these questions regarding any new investment. While an investment may make sense on paper, it still may not make a great investment. Our investment committee ultimately determines if a project is prudent based upon the investment returns versus the risk taken and the overall viability and success of the project.
Remove Operator Risk: We classify commercial real estate into two distinct areas: assets that require a specialized operator to provide successful operations and assets that provide a place for a regular tenant to conduct business. By focusing on assets that do not require a specialized operator we reduce our tenant failure risk. As such, we focus on industrial, retail, office, medical, multifamily, and land.
Invest Our Capital: The principals of Colo Development Partners invest their own capital alongside of our investors with no preferential treatment to our capital. We do not ask our partners to take risk that we are not willing to take for ourselves. Simply put – our interests are aligned.