Capital Mandate

Investment Buy Box

Every acquisition, ours or a client's, is measured against these standards before capital moves, whether that means buying a commercial property or an operating company outright. This is the actual mandate, not marketing copy.

Min. Transaction

$50MM+

Cash Yield

8.0%+

Hold Period

5+ Yrs

Cash Flow

Self-Serviced

Return Requirements by Asset Category

Category Cash Yield Target MOIC Target IRR Hold
Stabilized Real Estate 8.0%+ 2.0x 15%+ 5+ yrs
Value-Add Real Estate 6.0%+ at stabilization 2.2x 18%+ 5 to 7 yrs
Ground-Up Development n/a until delivery 2.5x 20%+ 5 to 8 yrs
Operating Companies 8.0%+ 2.0x 18%+ 5+ yrs

Minimum $20MM EBITDA on operating company acquisitions.

Target Net IRR by Category

Stabilized Real Estate
15%+
Value-Add Real Estate
18%+
Ground-Up Development
20%+
Operating Companies
18%+

Geographic Mandate

R&H Capital acquires commercial real estate and operating companies in the following markets:

East Coast

Miami and South Florida, Boston, Washington DC, Atlanta, Philadelphia

West and Southwest

Phoenix, Las Vegas, Seattle. California excluded.

Excluded Markets

All of California, secondary and tertiary markets, non-institutional locations

Debt and Leverage Mandate

Stabilized Assets, Max LTV 65 to 70%
Stabilized Assets, Min DSCR 1.30x
Value-Add, Day-1 LTV 60% max
Ground-Up, Max LTC 60 to 65%
Operating Co., EBITDA Leverage 3.5x to 5.0x
Operating Co., Min EBITDA $20MM+

Automatic Disqualifiers

California exposure

Blind-pool or commingled structures

Transactions under $50MM

Sub-8% cash yield

Leverage outside mandate

Debt not serviceable from cash flow

First-time or unqualified GPs

Exit-dependent underwriting

Frequently Asked Questions

What size deals does R&H Capital invest in?

R&H Capital's minimum transaction size is $50MM or more, across commercial real estate and operating companies. Operating company acquisitions require a minimum of $20MM in EBITDA.

What types of assets does R&H Capital buy?

R&H Capital buys stabilized commercial real estate, value-add real estate, ground-up development, and operating companies with at least $20MM in EBITDA.

What markets does R&H Capital invest in?

R&H Capital invests on the East Coast in Miami and South Florida, Boston, Washington DC, Atlanta, and Philadelphia, and in the West and Southwest in Phoenix, Las Vegas, and Seattle.

Does R&H Capital consider deals in California?

No. California is excluded from R&H Capital's geographic mandate, along with secondary and tertiary markets and non-institutional locations.

What returns does R&H Capital target?

Target net returns range from a 2.0x to 2.5x MOIC and a 15% to 20%+ net IRR depending on asset category, with a minimum 8.0% cash yield on stabilized assets.