Since Next Realty Fund XI, LP launched in 2024, Next Realty has reviewed hundreds of investment opportunities and pursued a handful of properties that align with the fund’s strategic objectives. Throughout the process, Next Realty has maintained its focus on patience, agility, and diversification.
Relying on longstanding relationships, Next Realty gathers high-quality deal flow and thoroughly vets each opportunity with rigorous financial evaluations and comprehensive due diligence processes. Of course, not every investment opportunity is the right opportunity. In fact, sometimes the best deals are the ones that aren’t executed because they preserve capital for an opportunity better aligned with the strategy.
In the past several months, Next Realty pursued the potential Next Realty Fund XI, LP acquisitions that didn’t come to fruition for various reasons, including:
- A seller’s unwillingness to adjust the price commensurate with identified risks, including an anchor tenant’s potential relocation from the property.
- A seller’s desire for an abbreviated due diligence period (rather than the standard 30-day period) and reluctance to accept the financing contingency in Next Realty’s offer.
- A developer’s rejection of an office-to-residential conversion for the property.
- Another bidder’s above-market purchase price offer.
In each of these instances, Next Realty determined that the acquisitions did not meet well-established criteria. By staying patient and relying on clear and well-defined standards to drive the decision-making process – rather than hunches or emotions – Next Realty was able to make well-informed, reasoned decisions that align with the Multi-Solution® strategy.
“Will the property be worth more in five years than it is today? If we don’t think so, we don’t pursue it. We do not focus on current yield as much as long-term prospects,” Andy Hochberg explained. “With so much competition for transactions, we need to be comfortable with pricing to go through with an acquisition.”
Next Realty’s investor-centered approach prioritizes building meaningful relationships and maintaining ample trust. Since we didn’t execute these acquisitions, Next Realty Fund XI, LP maintains the liquidity it needs to pursue more advantageous investment opportunities, such as the recent acquisition of Gaitway Plaza in Ocala, Florida.
