Hyper-Focused
We buy exclusively in the Houston, DFW, Austin, and San Antonio markets, where there are low vacancies and strong demand for our product type. We purchase below replacement cost, update the asset with our expert in-house team, and secure top-of-market leasing terms, allowing our investors the opportunity to generate strong returns with relatively low risk.
Transparent, Frequent Communication
Transparency is our mantra because we see our investors as true partners, not just capital sources. Every month, we dive deep to deliver updates rich in detail about asset operations, with supplementary full property financials provided. As long-time real estate investors, we know that through the life-cycle of an investment, not all news will be good news; we are committed to delivering both kinds with the same promptness and clarity.
Aggressive, Yet Patient
We are set up to acquire 8-12 deals per year and move fast when a good deal is presented. We have a bias to action, but are never forced. If we have to wait, we will wait. Our company is set up so that we are never obligated to buy or sell deals.
Optimal Deal Size
We are actively searching in the $10M-$100M price range.
Investment Structure
We typically raise capital deal-by-deal, but occasionally use pooled investment funds depending on the deal time and timeline. Accredited investors are invited to join our interest list to get a first look at deal offerings as they become available.
Separate Entities for Each Property
Each property operates under a separate ownership entity. This structure protects our investors’ liability and provides them with tax advantages.
Tax-Advantaged
We aggressively utilize accelerated depreciation schedules and cost segregation strategies on our properties, which allows our investors to take advantage of maximum tax benefits.
Hold Duration
Our deals are structured to hold for the long term, and we will only sell an asset when it produces a highly favorable outcome for our investors. Because of this, we do not have a standardized hold period for our investments. Instead, we create a specialized investment thesis tailored specifically to each deal.
Prudently Financed
We are conservative when it comes to financing our deals. Although debt allows for higher returns, we are cautious to protect our downside when the market inevitably experiences a downturn. We only finance at terms that are aligned with our long-term holding strategy and that protect our assets from market compressions.
Top Legal Representation
We work with top law firms in Texas to ensure that we and our investors are protected to the highest extent possible.
Co-Invest
We’re in this together. Harbor Capital co-invests in every deal we bring to our LPs. Typically, Harbor Capital invests 5-10% of the equity in each asset we purchase.
Quarterly Distributions
We distribute to our investors quarterly through automated ACH deposits.
Off-Market Deal Sourcing
We have a strong and extensive network of dealmakers in the market, which allows us to look at deals others don’t. Our extensive deal network includes brokers, agents, and other deal-making professionals. Harbor Capital has a reputation for honesty and no-nonsense dealings, which allows us a first look when a valuable opportunity presents itself.
Real Returns, not Unrealistic Spreadsheets
We prioritize cash on cash returns, not unrealistic growth underwriting. We test our models with worse-than-worst-case downside scenarios to ensure each asset is built for a long-term hold. Asset appreciation is an added bonus, not a necessity, for our return profile.
Best-In-Class Investor Interface
We work with Juniper Square to provide an excellent online platform for our LPs. Investors are given a portal login with access to extensive, up-to-date information where they can see return metrics, tax documents, distribution history, and more. All investment documents are signed virtually, and capital contributions and distributions are automatically processed via ACH transfer.