Why Invest?

This is a great time to buy shopping center assets. WDC believes that safe income-producing shopping centers should be an important part of an accredited investor’s portfolio. As we move into a higher tax world, it is critical to capture the tax advantages from real estate, including depreciation and long term capital gains. We use our expertise to sort through all of the existing shopping center acquisition opportunities to identify the select few that have the safety and return requirements for an investor’s portfolio.  Below is a synopsis of our investor strategy:

• We look at every shopping center for sale that is over 50,000 sq.ft. and not in major markets in the following states: Texas, Louisiana, Mississippi, Alabama, Arizona, New Mexico, Oklahoma, and Arkansas.

 

• We use our retailing and business background to analyze each center for the strengths of the tenants

 

• We look for acquisition cap rates that reflect the new reality. We prefer vacancy greater than 15% to allow for further upside.

 

• We borrow 60%-80% from a community lender and raise 20%-40% equity from accredited investors who each invest between $50,000 and $250,000

 

• We pay a preferred return ahead of any return to investors, plus a majority of the profits.

 

• The investor does not sign a note.

 

• The investor gets the advantage of depreciation and rapid, at most 20-yr amortization

 

• We have skin in the game

 

• A typical investor is usually a business owner who wants to earn more than 1% on his cash and wants low risk income-producing real estate for diversification

 

• We target a 5-7 year hold and at the same time recognize that the holding period could be longer if the market for selling the asset is weak.