What We Do
“Visionary companies use the genius of the AND—experimenting and developing—while still adhering to the core ideology.”
– Jim Collins, Good to Great
– Jim Collins, Good to Great
Graceada Partners has a vertically integrated team of 75+ professionals focused on creating value in multi-tenant industrial and multifamily real estate.
Multi-tenant industrial and multifamily are two of the most recession and inflation resistant asset types. Secondary and tertiary markets are perhaps the last large non-institutional segments of real estate. With $1.6 trillion of multifamily and industrial real estate in secondary and tertiary markets, this is a large, mature, and inefficient market.
Focus on Attractive Markets
Long-term population growth
Relative affordability
Supply-constrained
Quality of life
Build Robust Deal Pipeline
Establish broker relationships
Build off-market deal flow
Underwrite multiple properties
Selectively invest in attractive properties
3-18 month timeline from underwriting to acquisition
CapEx Improvements
Cure deferred maintenance
Renovation of units
Additional or upgraded amenities
Exterior improvements
6-12 month timeline
Bring Rents to Market Rates
In place rents are typically 20-40% below current market rates due to less professional management
Actively work through the rent roll to renew leases at current rates, greatly improving cash flow
12-36 month timeline
Exit
Typically 3-5 year holding period
Increased liquidity due to disciplined deal size
Potential buyers include existing market of private stabilized cash flow buyers
Increased control and transparency that results in reduced risk and greater returns
Asset Management
Graceada professionals have experience from Shorenstein, Buzz Oates, JLL, CBRE, Prometheus, and REOCs, as well as designations including CCIM and CPM. Graceada utilizes industry leading asset management software, such as ARGUS and RealPage.
Construction Management
Graceada has 50+ years of combined experience in construction management and maintains EPA universal designation and multiple specialty contractor licenses, including HVAC and landscape.
Property & Fund Accounting
Graceada professionals have experience from John Hancock Farmland (pension investing), Moss Adams, Pulte Homes, and REOCs, as well as designations such as CPA. Graceada utilizes industry leading property and fund accounting software, such as Juniper Square and Yardi. Each fund receives an annual audit by a third-party audit firm.
Property Management
Graceada has more than a decade of third-party property management experience, managing some of the largest assets in the regions. They are an Accredited Management Organization with the Institute of Real Estate Management. Graceada utilizes industry leading property management software, such as Yardi, Voyager,and Building Engines.
Graceada Partners employs institutional expertise and industry best practices to inefficient markets.
Experience
John Hancock
Shorenstein Properties
JLL
Blackstone (Osso)
Prometheus
CBRE
Buzz Oates Companies
Townsend Group (Alliance)
AndCo Consulting (Alliance)
Strategies + Practices
Dynamic Rent Pricing
Building Systems AI
Technology-Enabled Leasing
Green Auditing
Proprietary AI & Data Driven
Acquisition Process
Energy Efficiency Audits
Vertically Integrated
Third Party Valuations
Audited Fund Financials and GAAP Accounting
Institutional IT Best
Practices: MFA, firewall, secondary email protection,
IT security training
Segregation of Duties
Human Resources and Risk Management
Proptech
HANK.AI: HVAC system optimization & indoor health
RealPage: dynamic rent pricing and asset performance optimization
Aquicore: Energy efficiency
AI to identify opportunities, mitigate issues & achieve energy reduction goals
Building Engines: commercial tenant communication and vendor work order management
VTS: Commercial market lease analysis & lease management
Esusu: Rent payment reporting to help residents build credit
RentCafé: residential tenant and applicant portal
Environmental Sustainability
Water Consumption AI
Energy Efficiency AI
EV Charging Stations
Green Auditing
Energy Star Portfolio Manager (ESPM) and CA Benchmarking
Solar Energy Systems
Building Systems AI for Indoor Health & Air Quality
LED & Other Energy
Efficiency Retrofits
Outdoor Amenities
Tools + Designations
Juniper Square
Yardi Systems
Argus
Costar
Certified Property Manager (CPM)
Accredited Management
Organization (AMO)
Certified Public Accountant CPA)
Certified Commercial Investment Member (CCIM)
Environmental Protection Agency (EPA) certified
Service Providers + Affiliations
Paul Hastings (legal)
CohnReznick (auditor)
Alliance Global Advisors (institutional advisor)
Marsh McLennan (insurance)
IREM
PREA
PREA Foundation Supporter
NAREIM
iREOC (Institute for Real Estate Operating Companies)
TEXPERS (Texas Assn of Public Employe Retirement Systems)
SACRS (California State
Assn of County Retirement Systems)
Evaluated over 700 Properties Representing $10 Billion in Deal Flow
The Firm is extremely selective and has only purchased about 5% of what it has evaluated.
Executed on 53 Properties, Representing
Approximately $590 Million in Value
Graceada’s leadership team has collectively managed over $10 billion in assets across all four property types through the last three decades of market cycles. The Firm was founded in December 2008 and spent its formative years in the Global Financial Crisis, managing distressed assets for foreclosed borrowers, special services, and special assets teams. This experience and the leadership team’s prior experience was foundational in how the Firm invests and mitigates downside risk.
The three core principles the Firm focuses on are:
One of the best mitigants to risk is buying properties well. This is why Graceada focuses on a proprietary pipeline of off-market investments. This allows the Firm to negotiate on a one-buyer-to-one-seller basis versus a bidding, competitive environment. Because, on average, Graceada purchases one property for every 20 evaluated, the Firm is able to identify value relative to the market.
From experience gained in the Global Financial Crisis, Graceada has always had a preference for fixed rate date and conservative leverage from balance sheet lenders. Graceada avoids the use of bridge and securitized debt when possible. Current Graceada portfolio-wide leverage is 55%.
The fastest way to create margin of safety in an investment is to grow net operating income (NOI) and cash flow. This effectively de-levers the investment and provides optionality on sale versus hold. Graceada focuses on acquiring properties where the Firm can quickly grow NOI. On average, NOI growth begins to occur in the Firm’s properties within the first three months of acquisition. The Firm’s vertically integrated team is adept at quickly adding value to investments and growing margin of safety.