Risk is a constant component of investment. The partners at MLB Capital Partners look meticulously at how to value, mitigate and best manage risk. According to Senior Partner Todd Mason, “A major component of our asset purchase and investment philosophy is to stay actively engaged in the risk management strategy and direction of each investment”. We constantly review our positions, current market trends, capital requirements, investment performance, competitive properties and new opportunities. MLB Capital Partners seek out conservative investments that produce good return on cash invested with an excellent upside on the sale side. Quality, not volume, is the goal.
PRESERVATION OF CAPITAL
MLB Capital Partners and our select group of investors have worked decades to build wealth. Our investment philosophy is to look first at how to insulate invested capital from the stress of adverse or changing market conditions. Before we invest, we develop contingency models to anticipate and react to potential avenues for the recapture of equity. No deal is so attractive that it would cause us to relax our principles to accept excessive risk. Our first duty is to preserve working capital while providing a competitive market return on capital invested, then to maximize the growth of asset value and to position each investment for eventual sale.
ATTENTION TO DEAL STRUCTURE
Collectively, the partners at MLB Capital Partners have accumulated 80 years of commercial real estate experience. The partners recognize gain is realized on the exit side, but experience shows us “you make your money going in”. Designing the right vehicle structure is as critical as finding the right property for investment. It is attention to critical and relevant detail during the creation of a transaction which provides better and consistent returns. Too often practitioners or consultants spend much of their time and most of their energy on deal points that are less significant and or sometimes irrelevant to the value proposition. Knowing what is critical and relevant to value creation and growth is the result of decades of real world experience.
Recognizing every investment carries inevitable risk, it is critical to develop multiple exit strategies to maximize return or, in the event of a negative market condition, provide for the best possible outcome. As an ex-military paratrooper, Managing Partner Fred Baca knows well the importance of checking your parachute. Knowing how to exit is another factor which often escapes investors. Planning and preparation, not “waiting for the right market conditions” is the best way to conclude a transaction.
HEALTHY RETURN ON INVESTED CAPITAL
MLB Capital Partners focus on long term results but insist on appropriate cash on cash returns. It is not a question of long game versus short but a balance of good, constant returns on equity with the anticipation of strong appreciation in value which drives our investment philosophy.
EXCELLENT UPSIDE POTENTIAL
While not a typical “value add” or “opportunity buyer”, MLB Capital Partners target investments that provide the best opportunity for growth in value. MLB Capital Partners does not look for distress properties or those which require significant additional capital infusion to provide strong returns. Rather, we look for properties with unrecognized value or unrealized return. This may occur in a market or geography where properties appear “under the radar” of institutional investors but too large for small investors. They often come from market intelligence which identifies a potential change in conditions. Higher returns are a direct result of constant vigilance. Through diligence and hard work, founding partner Jeff Lindenberger excels at maintaining close relationships within our selected market segments of interest. Jeff provides an intimate knowledge of relevant comparable transactions and constantly surveys the ever changing market conditions.
RESEARCH AND ANALYSIS
There is an old real estate adage, “Under all, there is land”. Behind every successful transaction there is an immense amount of data gathering, research, analysis and interpretation of compiled information. Today there are a myriad of easily accessible and relatively inexpensive CRE data sources. Managing Partner Fred Baca, is one of the founders of real estate data collection services in Houston. Mr. Baca spent four decades participating in the creation of many of the basic information services in use today. While market intelligence is a primary element in discovering and creating value, according to Mr. Baca, “Knowledge comes, not from having data but using information to reveal underlying value. It comes from understanding market patterns and tendencies that enhance or inhibit value creation. You don’t subscribe to market knowledge, you gain it through real world, practical experience.” The partners at MLB Capital Partners have combined nearly a century of working experience in commercial real estate.
MLB Capital Partners
MLB Capital Partners is a commercial real estate investment company focused on niche investments. Todd Mason, Jeff Lindenberger and Fred Baca use their combined 80 years of real estate experience to discover and add value to commercial properties. The target deal size is “under the radar” of institutional investors, but too large for most individual buyers.
MLB Capital Partners’ overall focus is on long term results, while also insisting on appropriate cash on cash returns for investors. It is not a question of long term versus short term, but rather a balance of constant returns combined with an appreciation of the asset over time. This is achieved through diligent investments that are responsibly developed and managed to their full potential. The investment philosophy is driven by quality not quantity.