Envision seeks risk-adjusted high yield returns by investing in stabilized and value-add commercial real estate throughout the United States with the following attributes: (i) below fair market value acquisition price, (ii) investment grade tenants, performing tenants, long-term leases and/or leases with assurances of renewal, (iii) high leverage non-recourse mortgage financing, and/or (iv) upside through adding value with risk mitigation, additional leasing, lease renewals, and/or improvements or renovations to the property.
Generally, traditional high leverage real estate transactions present a high level of risk for investors that may or may not justify the anticipated returns. However, Envision employs a variety of creative debt and equity financing techniques to obtain higher leverage resulting in above-market returns for investors, without the additional risk. These structures may include, for example, personal guarantees from the sponsor, preferred equity, non-recourse mezzanine financing, security deposits, escrows and/or reserves. These alternative structures result in enhanced returns and an accelerated return of capital to investors, and therefore, a reduced level of risk and a superior investment.
Unlike a REIT or other heavily regulated investment vehicle, Envision’s company and transaction structure eliminates wasteful expenditures such as office, administrative and general overhead costs and employee salaries, and minimizes due diligence costs and legal fees, resulting in our ability to pass on the savings to and produce higher returns for our investor partners. Typically, the members of Envision will cover the up-front due diligence costs if a transaction does not close for any reason, and generally our properties are acquired through a separate single purpose limited liability company and equity is contributed under the safe harbor provisions of the federal securities laws, which minimizes regulatory, registration and compliance costs.
“We are what we repeatedly do. Excellence, then, is not an act but a habit.” – Aristotle
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” – Axay D. Bhisikar
Our Track Record
Envision has assembled a group of experienced and highly capable individuals with the knowledge, skills and relationships that are essential for identifying, structuring and executing unique strategies in order to provide exceptional and above-market returns for its investors. Moreover, our principal’s experience as an attorney enables us to find effective solutions that mitigate risk, overcome obstacles and get deals done.
Envision’s track record of successfully executed transactions demonstrates the efficacy and reliability of our model. None of Envision’s investors or transactions has ever suffered a loss, and all of our transactions have been profitable, every year.
Our properties and our ability to evaluate transactions are not limited to any specific geographic area. We believe in casting a wide net in order to find the best possible deal – in order to find a good opportunity, a buyer must look at many potential opportunities and must be able to compare options,
Our Investment Structure
Our typical deal structure consists of an institutional or private lender providing 65% to 75% of the funds required to acquire a property, with a mezzanine lender or preferred equity investor providing an additional 5% to 10% leverage. Envision’s sponsors will provide any additional required equity that is not contributed by investors. Envision’s sponsors will arrange for mortgage financing and sign any guarantees required by a mortgage lender.
Envision never takes an asset management fee or similar fees, and typically does not receive any fees or compensation “off the top” and will only be compensated for achieving performance goals. Typically, our investors will be entitled to a preferred priority return (off the top), meaning that the sponsors will not receive any compensation whatsoever unless the preferred return hurdle is achieved. Thus, the sponsors are rewarded only for successfully exceeding the partnership’s investment objectives. This performance-based structure results in an appropriate long-term incentive for effective management decisions.