Our Approach to Investment
Investment Criteria
Okoro Development targets undervalued multifamily and commercial real estate investments located in Baltimore City submarkets that exhibit strong supply and demand fundamentals.
Deal Size
Typical investments are under $10 million in value allowing us to avoid institutional competition.
Target Return
Projects commonly target 15-25% IRR and an equity multiple of 1.5x-3.5x
Hold Period
Sales typically occur within 3 – 7 years.
Product Types
We create multifamily, office, retail, and mixed-use, adaptive re-use projects on urban in-fill sites.
Geography
We primarily focus on opportunities in under-developed or vacant areas of the Baltimore City Central Business District (see map below), as well as opportunities throughout the rest of the Baltimore Metropolitan Area on a case-by-case basis.
Locational Attributes
Okoro Development pursues markets with robust demand drivers, such as employment and transportation hubs. We are also motivated by favorable economic conditions such as population, employment, and income growth. Our goal is to redevelop sites in the path of growth to maximize short and long-term upside potential.
Investment Strategy
Competitive Advantage
Okoro Development leverages its 20-year development, construction, and management team experience in Baltimore City to purchase, redevelop, and manage opportunistic, value-add and underperforming real estate assets. Through its long-standing relationships with local officials, as well as business and community leaders, we are uniquely capable of purchasing un-stabilized and distressed assets at a basis that is well below replacement cost.
Opportunistic Investments
As the sponsor, Okoro Development buys property with an existing building with the intent to redevelop it to its highest and best use. We manage each stage of the development process from purchasing the asset to the asset's eventual sale, including:
· Pre-Development: environmental testing, zoning approval, building, and other government permits
· Development: managing architects, engineers, and contractors
· Lease-Up and Stabilization: pre-leasing, leasing, and property management
· Exit: refinance or sale within hold period at maximum value
Value-Add Opportunities
Okoro Development targets projects that have in-place cash flow, with the market potential to increase that cash flow over time by making improvements to or repositioning the property. Our value-add investment strategy is focused on achieving high stabilized cash-on-cash and overall returns while protecting downside during stabilization. We acquire distressed projects with excellent long-term potential and immediate opportunities to add value at the property level. These investments require capital improvements that may result in limited cash flow in the short term but generate attractive yields once fully stabilized. Returns will be maximized by either refinancing with long-term debt and returning a significant portion of equity to investors or exiting the investment.
