Asset management · Property
Property held for the long run.
Leased, performing property, bought for less than it would cost to build and held for the rent, inside the Asset management line of the holding company, and worked out rather than foreclosed when the loan on it has failed.
- Asset management line
- Leased and performing
- Below replacement cost
- Held for rent
- Structured, not formed
Property sits in Asset management
A storefront, clinic or workplace a neighborhood leans on, available for less than it costs to build.
Property is not a separate line of business. Leased, performing property sits in the Asset management line, beside outside capital run on the same rules as our own, and the holding company runs that line as Build Capital Management. What we source is a building already leased and already performing, bought for less than it would cost to build new and held for the long run rather than for a sale. What we run is the upkeep, the leasing, and, where the loan on the building has failed, the workout with the borrower in place of the foreclosure, the same workout the Debt recovery line runs on a loan. Every building sits on the same four controls the holding company owns for every platform, and a building that cannot be run on all four is not acquired.
Appreciation is not underwritten.
- What we source
- Leased, performing property a neighborhood leans on, bought below replacement cost and held for the long run
- What we run
- Upkeep, leasing, and, where the loan has failed, the workout with the borrower rather than the foreclosure
- How it is checked
- Underwriting, in-house audit and risk assessment before capital moves; appreciation is not underwritten and is not priced
The test before a building gets capital
Priced before capital moves
Nothing moves until the building is priced.
The lease, the tenant, the building and the loan on it are priced by our own underwriting before any capital moves.
Checked, not reported
The holding company does the checking.
The rent roll and the upkeep are checked by the holding company, not reported by whoever runs the building.
How the building fails
The downside comes before the price.
How the building fails is underwritten before the building is priced, and the price leaves appreciation out.
Run day to day
Upkeep and leasing, every day.
The upkeep and the leasing are run day to day by the holding company; nothing is held passively.
How a building is run
Source
A storefront, clinic or workplace a neighborhood leans on, already leased and already performing, available for less than it would cost to build new, in a scenario the holding company already understands. Nothing is bought for what the area might become.
Underwrite
Every building is priced by our own underwriting, audit and risk assessment before capital moves, and a building that cannot be run on all four controls is not acquired.
Operate
Active asset management runs the upkeep and the leasing day to day. Where the loan on the building has failed, the workout with the borrower comes before any foreclosure. Performance is checked in-house, not assumed.
Audit
The rent roll and the upkeep are checked in-house by the holding company, not reported up by whoever runs the building.
Property FAQ
Has Build Capital acquired any property yet?
No. The property service is structured, not formed; no building is held, no site is under contract, and nothing on this page is an offer.
Is property a separate line of business?
No. Property sits in the Asset management line, beside outside capital run on the same rules as our own, and the holding company runs both.