There are a number of key phrases and concepts that have come to define and communicate Next Realty’s philosophies and practices. In fact, that definition is so strong that the firm has trademarked many of them, such as:
Patient. Agile. Diversified.
Next’s business model is described as Patient, Agile, Diversified.
- Patient: Over the years, the firm has looked at thousands of investment opportunities, selecting a small percentage which it believed would generate attractive risk-adjusted returns. That methodical approach will translate to future investment opportunities.
- Agile: We continue to finetune our investment strategy based on market conditions. While our initial investments were in the retail asset class, we have pivoted as market dynamics have evolved and added additional property types such as parking and multi-family to our portfolio.
- Diversified: By assembling a portfolio of diverse asset classes, in select geographies, and of varying business plans, we believe we have outperformed the market on a risk adjusted basis. We continue to focus on acquiring high-quality properties and executing property-specific business plans to maximize the value of our assets.
Next Realty’s Multi-Solution® investment strategy focuses on the acquisition of high quality properties and executing specific business plans that take the asset from acquisition to repositioning to stabilization. The Next portfolio is diversified across alternative asset classes, geography and tenancy which enables the firm to balance delivering current income yields with longer term potential for value creation and capital appreciation.
Location, Liquidity, Luck®
Andy Hochberg established and refined the 3Ls as a more modernized take on the famous axiom Location, Location, Location. In real estate, location will likely always be one of the most important attributes of a property. Yet Andy contends that Liquidity – access to capital – is also important to re-tenant a property, make improvements and pay commissions. Sometimes, it is also important to have a little bit of luck on your side, too.
The Next Perspective in Real Estate®
The Next Perspective in Real Estate pays homage to the perspective that is uniquely Next’s. More subtly, it also refers to the fact that the professionals at Next are always anticipating a broader perspective, asking what’s next for a property, the industry and the overall business climate.
Next coined this specific term to describe properties that preserve capital with predictable, sustainable cash flow over extended periods of time and varying economic conditions. The firm considers this “buying safety at a good price.” This is accomplished through light physical improvements, operational efficiencies, and upgrades in tenancy, with the expectation of mild appreciation of the property value over the ownership term. These properties are more likely than core investments to be multi-tenant, though sharing a similar risk profile and business plan focused on preservation of capital.