Real Estate Investments
Citrine identifies, diligences, and executes upon innovative and compelling real estate opportunities across the return spectrum from coast to coast.
ACQUISITIONS
HIGH BARRIER TO ENTRY
Operating expertise, state and local licensure, and professional management are required, thus creating opportunities for adept owners to outperform.
BUYER FRIENDLY ENVIRONMENT
Challenges resulting from the COVID-19 pandemic, labor shortages, and inflation have weighed on the sector over the past 2-3 years. Thus, fatigued owners have begun selling at a compelling discount to replacement cost.
INCREASING DEMAND
The 80+ population is expected to grow ~50% over the next 10 years, approximately 10x the rate of the overall population, requiring 881,000 additional units.
FRAGMENTED INDUSTRY
The current stock of senior housing supply is largely controlled by local ‘mom and pop’ operators, providing substantial room for growth through centralized operations, streamlined systems, and innovation.
Deal Focus
Citrine Senior Housing
ELEVATING CARE FOR OUR COUNTRY'S MOST FRAGILE POPULATION
Citrine works with best in class senior housing operators to invest in value add, opportunistic, and special situation private pay senior housing communities.
APPROPRIATE FUNDING VEHICLES
Citrine employs the funding vehicle most appropriate for the hold period, return profile, and strategy of each investment. Examples include permanent capital into a company, programmatic joint ventures, syndication of equity from high net worth investors, and closed or open end funds.
ACROSS THE CAPITAL STACK
Citrine executes upon investment opportunities across the capital stack, including equity, distressed debt, and structured debt. The Firm has expertise in many transaction types including direct purchases, joint ventures, public-private partnerships, and preferred equity investments.
Investment Philosophy
CITRINE HAS A VALUE ORIENTATION
The company invests in opportunities with upside, as compared to focusing solely on overall market appreciation. Citrine strategies include distressed opportunities, thematically aggregating smaller assets, special situations, arbitrage opportunities, quality properties located in undercapitalized geographies, and deals where the company has an edge in underwriting, operating, and/or relationships.
Distressed Real Estate
REPOSITIONING UNDERPERFORMING PROPERTIES ACROSS REAL ESTATE CLASSES
Citrine seeks temporary illiquid situations and market inefficiencies that arise from distressed circumstances and buys assets accordingly.
Whole Loan and Loan Pool Purchases
TIME IN CYCLE TO BUY LOANS/PROPERTIES AT LOW BASIS
Citrine targets distressed note purchases collateralized by quality real estate, creating low basis opportunities to unlock value and improve otherwise overlooked or neglected assets.
STRONG SPONSOR
Citrine is partnering with Kenny Lipschutz, one of the foremost experts in the manufactured housing space, who operated HomeFirst Communities for 25 years, helping thousands of applicants become homeowners.
A LOW-COST HOUSING SOLUTION
Rising housing costs in the U.S. are prompting lower-income individuals to consider more affordable manufactured homes, which cost about 50% less per square foot than traditional houses.
LOW NET CHARGE OFF
MH loans perform better than conventional mortgages since residents tend to stay long term because it is the best quality, lowest cost option and relocation expenses are significant. Trifecta research indicates that 38% of MH owners have no intention of divesting their properties.
RECESSION RESISTANT INVESTMENT
The MH sector has exhibited resiliency during times of economic uncertainty, most notably during the GFC. Sector occupancy bottomed at 86.3% in 2007 and rose to 87.3% by the end of 2010, while many other economic sectors were still in disarray.
Citrine Manufactured Housing Capital
INCREASED ACCESS TO ATTAINABLE AND ATTRACTIVE HOUSING NATIONWIDE
Citrine Manufactured Housing Capital (CMHC), a pioneering finance company, is committed to alleviating the financing challenges faced by homeowners seeking MH chattel loans. With an equity deployment of $300 million to originate MH chattel loans, CMHC will increase access to quality housing for approximately 4,000 families in less than three years.
Citrine Investment Group
325 West Huron Street, Suite 714, Chicago, IL 60654
PRICING ADVANTAGES
Market dislocation creates buy opportunities through, for example, mispriced deals, off-market transactions, failed marketing processes, and corporate or fund dispositions.
VALUE ENHANCEMENT
Numerous strategies can be employed to improve asset value such as rescue capital, operational changes, covered land plays, adaptive reuse, and workouts.
DISCIPLINED UNDERWRITING
Our robust underwriting process is centered upon evaluating commercial real estate fundamentals, considering downside scenarios, and avoiding speculation - ensuring that value traps are avoided.
MULTIPLE EXIT STRATEGIES
Deal strategy allows for more than one avenue to create value.
DEBT MATURITY WALL
Over $2T of loans will come due through 2027.
FILLING A VOID
Lenders often lack the willingness and ability to take over their underlying collateral–the real estate–thus, they prefer to hire or sell to well-positioned asset managers.
LIMITED COMPETITION
Transactions are rarely marketed and instead curated around a select group of buyers who can provide certainty of execution.
STRONG RELATIONSHIP MANAGEMENT
Our deep pool of lender relationships as well as our Real Estate Investment Management Services position Citrine for success.