Arris Investments LLC was formed to capitalize on the growing void in the capital markets for institutional equity capital per deal under $15MM.
Institutional real estate investment management is transforming; diversified fund managers are consolidating into fewer platforms with increasing amounts of assets under management and many pension funds are bringing management in house in an effort to eliminate double promotes by investing directly with operating partners. These changes result in larger average investment sizes with only the “best-in-class” operators, leaving the majority of operators without many options to access institutional capital.
Arris provides equity capital to this underserved pool of operators across asset types in the western United States. Arris typically provides the majority of required equity, ranging from $5MM to $15MM per deal. Deals are underwritten on five-year holds and must involve a value-added strategy that does not rely heavily on rental growth.
Investment criteria include:
- Off-market transaction
- Strong local operating sponsor
- High barriers to entry market
- Discount to replacement cost
- Value added execution strategy