Interwest Capital was founded to acquire performing and under-performing loans secured by commercial real estate in the United States. Our wealth of experience has expanded our investment philosophy to include direct investment in real estate assets. Assets located in primary markets and secondary markets (exhibiting strong growth fundamentals) are considered by the investment committee for acquisition.
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Guiding principles for real estate acquisitions
Commercial real estate must exhibit a combination of characteristics from the following:
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Core Plus
- Stable cash flow
- Repositioning is not necessary
- Long-term asset and market certainty
- Class A
- Class B in a strong market
- 15.0% to 18.0%+ IRR
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Value-add
- Repositioning is necessary to achieve rent premiums
- Increasing net operating income via moderate capital expenditures
- Increasing market fundamentals
- 18.0%+ IRR
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Opportunistic
- Repositioning heavily is required
- Adaptive reuse / infill locations
- 2.5x+ equity multiple
- 25.0%+ IRR
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Desired Acquisition Characteristics
- Multi-family class “A” and “B” properties of 100+ units, built 1990+
- Hospitality properties ranked 3 stars or greater with 100+ rooms
- Senior/Assisted Living properties of 100+ rooms, built 1990+
- Office class “A” properties with 100,000+ square feet in primary markets exhibiting exceptional fundamentals
- Retail properties with single and/or multiple tenants
- Industrial class “A” and “B” properties with 100,000+ square feet
- Minimum acquisition size $10 million
Interwest Capital has particular expertise and interest in Historic Urban Properties/Adaptive Re-use projects including those that may be eligible for or currently are subject to Historic Tax Credit Structures and/or New Market Tax Credits.
Properties located in primary and strong secondary markets in the U.S. are eligible. Please view our case studies of acquired properties meeting the above criteria. Consideration may be given to properties in Mexico and Canada.
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Guiding principles for debt acquisitions
Commercial mortgage investments by Interwest Capital must meet a combination of these criteria:
- Senior whole loans from $5 million to $100 million
- Assets secured by income-producing commercial real estate
- Collateral may include multi-family, office, retail, industrial, hospitality and mixed-use property
- Interwest Capital has particular expertise and interest in Historic Urban Properties/Adaptive Re-use projects including those which may be eligible for or currently are subject to Historic Tax Credit Structures and/or New Market Tax Credits
- Collateral located anywhere in the U.S., with preference given to primary and strong secondary markets
Special Considerations
We will give special consideration to distressed debt requiring significant workout or restructuring efforts including:
- Assets in litigation
- Assets in foreclosure
- Borrower bankruptcy
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Interwest Capital is interested in building strategic partnerships and joint ventures with experienced sponsors, particularly those who are experts in their local markets. Ideal joint venture candidates will meet these criteria:
- Projects requiring equity investments of $5 to $30 million, with an overall capitalization of $20 to $100 million
- An investment period of 1 to 5 years
- Commercial properties including multi-family, hospitality, office, retail, mixed-use, single-family residential, industrial, self-storage and data centers
- U.S. primary and secondary market locations are preferred
- Viable opportunities in Mexico and Canada may be considered