Our Process
The DCDH Investment portfolio is controlled day-to-day by its Managing Partners under a consistent investment and approval process utilized for all of the DCDH Multi-Family real estate assets. The following is a brief summary of certain key aspects of the investment process the Managing Partners generally utilize on behalf of the Investment Fund.
Investment Analysis
To gauge potential investments the Managing Partners employ an asset-by-asset valuation method with a focus on fundamental cash flow projections, rate of return, and market supply/demand trends.
DCDH Value Philosophy
At various points in the respective real estate cycle the Managing Partners opportunistically apportion capital to various multi-family real estate assets in different cities throughout California (e.g. Los Angeles, West Hollywood) and various points in the capital structure that deliver an attractive risk-adjusted return.
Disciplined Investment Approach
The Managing Partners engage in a conservative underwriting and thorough due diligence process with respect to each investment offering. Capital preservation is at the top of the DCDH hierarchy of needs. Capital growth is a byproduct of our finely tuned operations, preferred access and efficiency systems.
Concentrated Long-Term Investment Approach
The Investment Manager utilizes extensive market research, operating knowledge and underwriting capabilities to take concentrated positions in selective investments that generally are not based on near-term market fluctuations, but rather on the long-term prospects of the underlying real estate value.
Focus On Operations
The Managing Partners utilize their extensive knowledge and experience to evaluate the quality of potential investments. Founded on well-established working relationships, the unique expertise of a variety of Real Estate, Tax, Law and Financial professionals contribute to the Managing Partner’s operations.
Long-Term Positive Outlook For Multi-Family Real Estate
The DCDH portfolio will always have a long bias, as the DCDH strategy is geared towards capitalizing on the long term macroeconomic conditions from which real estate values are derived.
Investment Life Cycle
Given the cyclical nature of the real estate business, the Managing Partners continually analyze the real estate market and underlying business fundamentals, as well as the investment performance surrounding each opportunity. This ongoing process mitigates against errors in the timing of the investment, and its disposition, as these two factors are crucial in the ultimate success of a transaction.
Preference For Gentrifying Markets And Value-add Assets
The Managing Partners concentrate on identifying below market investments relating to multifamily assets in well-located, supply-constrained markets that suffer from temporary or correctable flaws in their tenancy, physical attributes, management structure and market position.