WHAT WE DO

With a complex, integrated approach to managing real estate projects, Pentacore Development combines the roles of capital manager and project manager in raising money to finance development and added-value projects, while managing them profitably for investors. Our innovative approach combines land banking and asset management with minimal or no equity. An effective strategy is executed by the right acquisitions and management of the project, followed by appropriate financing after the value is added. We are focused on obtaining the highest possible risk-adjusted returns through acquisitions and development, with a focus on development and Added-Value projects.

Why invest with Pentacore Investments

Stability

Real estate is less volatile and has historically outperformed the S&P 500.

Cash Flow

Tenants pay monthly rent which covers all expenses and provides profit to the owners.

Amortization

Tenants pay down the debt which increases your equity, creating long-term wealth.

Tax Benefits

Depreciation is a free tax write-off that allows you to keep more profits in your pocket.

Leverage

You can leverage real estate, allowing for the purchase of $100M with only $25M.

Appreciation

Real estate appreciates in value.

ASSET LIFE CYCLE MANAGEMENT

The asset lifecycle management is the stages taken to determine if investors should exit, keep, or repurpose the property. In a value-added investment, the million-dollar question is whether to hold the property, repurpose, develop, improve, or exit. Value yields can be enhanced by “sweating” assets, increasing occupancy and rent, and minimizing non-recoverable expenses. As our core competency lies in the Asset Management side of the Real Estate universe, we manage the properties through our trusted partners who have extensive experience in that field.

INVESTMENT TYPE

DEVELOPMENT BASED INVESTMENT

VALUE-ADD BASED INVESTMENT

DEVELOPMENT

Value is created at every stage of action when the development is carried out successfully. The goal is to maximize the profit while simultaneously minimizing the risk. Our in-house development management expertise combined with our longstanding affiliations with experienced consultants and associates allows us to stay at the forefront of our projects and deliver exceptional value.

1. Acquisition

Our team diligently searches for “just on the market” and “off-market” properties that fit our formula of success. We negotiate the best price, conduct thorough due diligence, arrange to finance, and create investment syndicates to fully fund the acquisition. Fast and accurate due diligence performed by a dedicated team means we are assured that Afflatus selects the best of opportunities. We have premier access to high-value deals using our extensive industry connections and long-standing partnerships, often before they become publicly available.

2. Development

Pentacore provides complete development services throughout the procurement, development, and completion of the project. We closely observe each project on an ongoing basis to monitor any economic and social developments that could impact its performance and to may produce better risk-adjusted returns for our investors.

3. Exit

At Pentacore we assess dispositions with the same discipline and procedures we use to acquire properties, paying particular attention to performance potential. At times we may exit an investment before the expected time because doing so allows for a substantial profit for investors. This is however done very meticulously; every facet of the project is taken into consideration as well as the potential return of the capital.

VALUE-ADD

A well-located, under-performing asset with good turnaround or enhancement potential is the kind of asset we seek to invest in. Afflatus identifies and acts on value-enhancing opportunities without compromising the client’s threshold for risk. For every property we acquire, we develop a tangible and comprehensive plan for maximizing its future value – including an exit strategy for locking in future gains.

1. Acquisition

2. Revitalization or Conversion

Depending on the state of the economy and local real estate market, major renovation or converting properties may be essential through the revitalization process for certain projects. The property might have to be updated or be adapted based on the current demographic-economic needs to a different usage such as a commercial, residential, or mixed-use.

3. Stabilization

The goal is to generate the largest profit at the most reasonable market rate to obtain the highest value for refinancing or exit. This goal will be achieved by stabilization of properties’ income to make sure that the revenue stream is stable and reliable for all stakeholders including financial institutions.

4. Refinancing and Equity Take out

The refinancing process is a hands-on process for Pentacore to replace an existing fundraised at the beginning of the project with a new one from the bank at a very attractive rate. As a result, the investors will receive the entire or majority of their equity without giving up any share of the project. In fact, an investor could potentially bank a developable land with no equity for future development. At times we may exit an investment before the expected time because doing so allows for a substantial profit for investors. This is however done very meticulously; every facet of the project is taken into consideration as well as the potential return of the capital.

INVESTMENT STRUCTURE

Whether it be a Limited – General partnership, corporation, or joint venture, before we decide how to structure any project, we consider the nature of the project, tax, timeline, etc. In addition to our hands-on experience, we gather and implement the advice of lawyers and CPA’s to make sure we make the soundest decision for legal structure. Our goal at Pentacore is to make investment opportunities available to investors of all levels of income so that everyone can be part of the added value we provide to communities and the larger population in aggregate.

SERVICES

Pentacore is a boutique multi-disciplined property consultancy practice offering independent and strategic property advice to our clients for the “complete” property solution. The consultancy service is separate from our investment practice, we will act as advisors regardless of whether the client wants to invest with us or not. Pentacore provides comprehensive services for various real estate assets class Before beginning your journey with your real estate project, we will help you explore your options. Tap into the wide range of services that Pentacore has to offer. Our knowledgeable team will assist and consult people from all walks of life. With a tailored consultation firm like ours, we allow you to gain knowledge without having to invest in our services. Our goal is to help you save more money while earning more.

Investment Advise

Do not limit your options

Our team is compiled of experts who specialize in multi-type assets. Our team can assist you in exploring your different options and help you make an informed decision about the different types of assets you can invest in based on your needs.

ACQUISITION AND DISPOSITION

Premier Access

Utilizing our deep industry roots and long-standing partnerships, Pentacore has premier access to high-value land deals often before they become public knowledge. Define your suitable project and we will find the deal.

DEVELOPMENT MANAGEMENT

Optimum Results

Actively managing and monitoring projects during execution in order to assess risk and opportunity to produce a better outcome for our investors. Due diligence support (financial, physical & environmental) and managing municipal entitlement and approval processes are the most challenging and profitable parts of development. By determining whether another unit needs to be added or a store needs to be changed, you can increase the IRR.

ASSET MANAGEMENT

Keep, Sell, or Repurpose

The asset management team helps clients determine if they should keep, exit, or repurpose the property. We maximize the value of the assets by finding the optimum function of the property.

COMMERCIAL PROPERTY MANAGEMENT

Hassle Free, Steady Income

Owning and managing a property be stressful. Pentacore alleviates that by finding suitable tenants for your commercial properties. We handle the day-to-day stresses that come with owning a commercial property. Our team of professionals is experienced and can make owning a commercial property a breeze. We acquire AAA tenants that match the property’s needs, which results in a stable income. We also manage the parking and traffic that comes along with owning a commercial property.