Investing with Cohen Asset Management

The Opportunity

Industrial and Logistics properties are at the heart of the U.S. economy and play a vital role in the supply chain as they support the production and storage of goods, as well as serve as a key component in facilitating their movement from manufacturers to consumers. With the continued expansion of E-commerce, in an addition to manufacturers’ growing need for supply chain certainty and diversification, along with the pursuit of more local supply chains in North America (“re-shoring”) and higher levels of inventory on hand (“safety stock”), the demand for high quality, well located and functional industrial and logistics real estate is expected to outpace supply over the near term. The COVID-19 pandemic has not only solidified the industrial and logistics sector as the most resilient real estate asset class at present, but its positive impact on the sector’s fundamentals are anticipated to keep the industrial and logistics sector favored by both investors and occupiers for the foreseeable future.

Strategic Considerations

  • We invest across the spectrum of Industrial and Logistics opportunities including Core, Core-Plus and Value-Add, as the market conditions and opportunities present themselves.
  • Our investment strategy focuses on a cash flow driven investment model not reliant solely on leverage or inflation-related appreciation to achieve targeted returns. We seek to identify and acquire low and moderate risk institutional quality properties with embedded growth opportunities via contractual rental increases where value can be added to each investment through pro-active asset management.
  • We have built an organization that has the infrastructure and industry-leading systems to deliver the highest level of reporting and service to our investors, with scalability to accommodate our growth.
  • Initial leverage ranges from 0-55%
  • Our long-term, established relationships with a national network of real estate professionals provides access to investments either through individual transactions or joint venture opportunities, with the ability to invest alongside elite institutional investors.
  • We create value for our investors by establishing mutually rewarding relationships within the industrial real estate community in each of our Target Markets, particularly with tenants (our customers), brokers, sellers and ultimately the buyers of our real estate when we monetize investments.

Our Income Strategy

  • Stabilized assets substantially leased to high-quality tenants with long-term in-place leases and limited rollover exposure
  • Low to moderate risk assets with current cash flow
  • Well-maintained assets with little or no functional obsolescence
  • Minimal cyclical cash flow volatility
  • Our Income Strategy for deployed capital seeks to achieve the following: stable income, capital preservation, inflation protection and diversification when investing across multiple opportunities.

Our Value-Add Strategy

  • Assets that are undermanaged or capital constrained
  • Assets that have rollover or lease-up opportunities
  • Renovation, repositioning, or new construction
  • Investing in assets at price points below replacement cost
  • Enhanced-yield opportunities

Investing via a 1031 Exchange

For over 30 years Cohen Asset Management through its subsidiaries (“CAM”) has regularly utilized an IRC §1031 Tax Deferred Exchange (“Exchange”) to achieve its investors’ tax objectives, which in turn has given CAM intimate experience and knowledge of the proper way in which to navigate the Exchange process. Outside of CAM’s experience with Exchanges, CAM consummates several transactions every year in which it raises new capital to allow investor participation. While most investors contribute “fresh” capital to each transaction, investors are increasingly utilizing their IRC §1031 Tax Deferred Exchange proceeds from their separate, wholly owned real estate that they have sold as a means of investing side-by-side with CAM as a tenant in common interest (“TIC”). By investing alongside CAM, TIC investors receive the same benefits as the other investors in CAM’s sponsored and managed investments. Please contact us to learn more about investing with CAM via an IRC §1031 Tax Deferred Exchange.