Philosophy & Targets

Real estate investment, secured lending, and direct investments in operating businesses are labor and time intensive investment classes and are typically only a small portion of an investor’s total portfolio. Thus, it is not prudent to spend the time required to place private investments in these asset classes directly. Crimson Capital is the majority equity holder in its existing investment portfolio. This unique attribute offers investors the chance to co-invest in these types of direct investments alongside Crimson Capital’s own equity, perfectly aligning the incentive to maximize value for all investors in every transaction.

Crimson’s Investment Track Record

  • CORE & CORE + Real Estate – Crimson has acquired over 1,000,000 square feet of Core and Core + Retail, Self Storage, and Medical Office space. We manage and maintain our Portfolio on behalf of Founder Capital and High Net Worth Individual Investors, building a successful track record through all real estate cycles.
  • Residential Real Estate Development – Crimson’s principals have constructed 140+ units of Single Family Homes, Townhomes, 55+ communities, as well as Self-Storage, and Medical Office. Most recently, we completed a 31-unit first class age-restricted housing development in Montville, NJ. Currently, we are identifying and purchasing numerous ocean front lots on the Barnegat Peninsula in New Jersey with spec homes and raw land in various stages of development. Our residential real estate developments target a 18-30% total return.

Crimson Capital Investment Responsibilities

Using our risk-adjusted approach, Crimson Capital offers investors a complete investment process including deal origination, initial underwriting, negotiation, financing, and closing of investment opportunities. Once acquired, Crimson Capital manages the asset and maximizes value in light of changing market conditions. Monthly cash distributions are made directly to our investors, while quarterly and annual reports keep our investors in touch with their investments.

Investment Targets (including but not limited to):

Real Estate

  • CORE:
    • Type: Single / Multi Tenant Retail Properties, Multi Family, Office and Industrial.
    • Location: Stable markets with strong demographics that offer strong current returns, appreciation potential, and market liquidity.
    • Price per square foot: In-line with current replacement cost, decreasing the chance for unanticipated depreciation.
    • Lease: Types that are NN and/or NNN limiting non-reimbursable expenses.
    • Initial Lease Terms: Seven years or more containing rental bumps and average or below average rents.
    • Credit Tenants: Those with strong corporate guarantors (minimizing leasing risk).
    • Residential and Commercial Lending
      • Hard money secured shared equity mortgage
      • Short term (12 months) collateralized line, co-funded with business plan
      • First position mortgage/line of credit for asset repositioning
      • Light construction with shared equity
      • Mezzanine
      • Balance sheet contribution
    • Acquisition
      • Opportunistic time sensitive acquisitions
      • Residential/Commercial repositioning
      • Capitalization rate market discounts
      • Partially constructed discounted properties
        • Land worth banking with as-of-right or approvals in place

Secured Lending

  • Financial Instrument Acquisition
    • Factoring
    • Purchase order funding
  • Recorded 1st mortgages (individual or bulk) for resale/own underlying asset
  • Synthetic B-notes
  • Hypothecated interests
  • Personal/Corporate guarantee interests
  • Secured residential 2nd mortgages (profile intensive)
  • Tax liens
  • Stock and bond certificates

Private Equity Investment

  • Directing private equity investments into established and early-stage operating businesses