Strategy

Our Strategy

  • Long Track Record

    Our founder has built a solid reputation of delivering consistent value to investors, managing more than $450M in real estate as GP over the last 20 years.

  • Hyper-Focused

    Our team is exclusively focused on acquiring and managing only Class B industrial assets in Texas’s four largest cities. We know our product type and market well, giving us a leg up on competitors and allowing us to move quickly when the right opportunity presents itself.

  • Deal Flow

    We acquire 7-10 deals per year.

  • Optimal Deal Size

    Our sweet spot lies in single- and multi-tenant deals in the $5M-$50M price range. We have found substantial opportunities to source mispriced and underutilized assets in this price range, and our hands-on management approach allows us to execute on our investment strategies quickly after closing.

  • Investment Structure

    We typically raise equity deal by deal, but may use pooled investment funds depending on the deal type and timeline. Accredited investors who have passed our new investor vetting process and have been invited to join our interest list are able to invest in deal offerings as they become available.

  • Separate Entities for Each Property

    Each of our properties operates under a separate ownership entity not only to protect our investors’ liability, but also to provide them with tax advantages.

  • Tax-Advantaged

    We aggressively utilize accelerated depreciation schedules on our properties, allowing deferment of tax liabilities throughout the hold period. This enables high-earning investors to benefit from tax cuts to help offset other income.

  • Prudently Financed

    While leverage does wonders for returns, we know all too well what it can do when the market turns. We are cautious with debt, prudently financing deals with attractive terms and strong debt service coverage ratios to ensure that even drastic decreases in lease income will not impede our ability to service debt and retain the asset for long-term appreciation.

  • Hold Duration

    We acquire assets we can favorably hold for the long haul, and will sell a property only if we source a buyer who is able to pay a compressed cap rate in a favorable selling market. When possible we offer a 1031 exchange opportunity for investors to roll their gains into another property to avoid taxes. Our typical hold period is 3-5 years, with some assets in certain markets being held for longer periods.

  • 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 invest our own capital alongside our investors in every deal that we do. Typically Harbor Capital invests 10% of the equity needed for each offering.

  • Quarterly Distributions

    We distribute to our investors quarterly through automated ACH deposits.

  • Off-Market Deal Sourcing

    We most often purchase properties that are “off-market” by reaching out directly to sellers and leveraging our extensive broker network. Harbor Capital has a reputation for honesty and no-nonsense dealings which means we’re often brokers’ first call when they find a valuable opportunity.

  • Solid Deal Fundamentals

    We prioritize sustainable cash-on-cash returns to withstand the ebbs and flows of the economic cycle, and will never underwrite a deal with unrealistic market growth expectations. We rigorously vet our deals with exaggerated downside scenarios to ensure each asset is built for a long-term hold. Asset appreciation is certainly a nice bonus, but is not necessary for our properties to perform well for our investors.

  • 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.