Our investment philosophy blends rigorous numerical analysis with the intrinsic stories of the properties, ensuring each investment is not only quantitatively sound but also qualitatively compelling. We maintain a conservative approach in our projections, conducting thorough evaluations (property taxes, insurance, personnel, repairs, rental growth, etc) to mitigate risks and safeguard investor interests.
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Operating on a direct ownership model, we steer clear of the complexities of fund structures, providing investors with clear, direct stakes in properties. Furthermore, SANA's participation in every investment ensures our interests are fully aligned with our investors, reinforcing our commitment to shared success.
Investment Criteria:
Type
Value-Add: Properties with untapped potential for improvement or repositioning. We target an annual average cash distribution of 6-8%, aiming for an IRR of 15%+ through strategic capital appreciation and value-add initiatives.
Core-Plus: Properties in stable markets requiring minimal improvements. These assets generate steady income with moderate growth potential. Our core-plus strategy focuses on properties with an annual average cash distribution of 8-10%, seeking an IRR of 11-12% primarily through capital appreciation.
Market
Our geographical focus is on a diverse range of markets throughout
New York, New Jersey, and Connecticut, with a priority on areas exhibiting favorable supply-demand metrics and positive net migration. Additionally, we seek regions with household incomes capable of supporting both present and future rental demands, complemented by a strong local economy and employment drivers. Nonetheless, we remain receptive to ventures in alternative markets provided they demonstrate viable conditions supported by a well-defined business plan.
Property
Size: We seek investment opportunities in properties with a purchase price ranging from $4 million to $20 million.
Class: Our strategy predominantly targets A and B class properties, reflecting our commitment to acquiring assets of high quality and value.
Co-Sponsorship (Co-GP):
SANA Properties is open to co-sponsorship opportunities, enabling us to extend our reach and undertake projects that align with our foundational values and investment ethos.
Why Invest in Real Estate?
Investing in real estate offers numerous compelling advantages. Beyond the potential for steady cash flow, capital appreciation, and portfolio diversification, real estate investments provide various avenues for tax shelter, including bonus depreciation and 1031 exchanges, while also serving as a hedge against inflation. Moreover, strategically leveraging debt can significantly boost returns on equity. Over time, as the loan principal is paid down through property cash flow, overall equity increases, thus amplifying profitability. Most importantly, it offers the opportunity to leverage tangible assets for long-term growth.
At SANA Properties, we understand that successful real estate investing requires a careful blend of the right properties in the right markets at the right time for the right price, underpinned by diligent management and meticulous care for each property. Our strategic approach ensures that we deliver beyond our investors' expectations, grounding our successes in trust, expertise, and a clear vision for the future.
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