Generally, larger investment transactions require more effort to pursue and are significantly more competitive, driving down returns. We seek aggregation plays, where we gain efficiency by acquiring multiple deals of a similar type.
As the majority investor, CCM often provides up to 90 percent of the equity required in its transactions, using joint ventures with flexible return structures. We do not assume additional exposure, such as completion or loan guarantees. Ultimately, the goals of our investments are strong cash flow and solid returns, with reasonable risk. Patient in our deal flow and investment horizon, we typically hold each asset for an extended period.
Primary Asset Types: Residential, Retail (grocery-anchored), Mixed Use, Medical Office
Growing Allocations: Hospitality, Self-Storage, Single Tenant
Target Geography: Southeast U.S. and Caribbean (Puerto Rico), as well as select multifamily in the Northeast
Equity Commitments: CCM equity investments of $3.0-$12.0 million per deal
Hold period: Deal dependent, five-to-seven-year average for those projects with fewer tenants and whose value is more dependent on remaining lease term; longer for others.
Returns: Risk-adjusted, 8%-10% average cash-on-cash yield over five years with a high-teens IRR for a 5-year hold; 10%-12% average cash-on-cash yield over ten years with a mid-teens IRR for a 10-year hold.