Investment Philosophy

Z-Co’s experience as an owner-operator of real estate assets is at the core of its investment strategy.

Since the formation of the firm in 2005, Z-Co. has been an owner-operator of properties. The firm has leased, managed, developed and re-developed assets in this regard. Z-Co. has brought this skill set to the underwriting, purchase, and execution of performing and non-performing debt.

The firm believes that the likelihood of a slow and uneven economic recovery outside of Texas, the desire of financial institutions to sell sub-performing assets and the need for vast amounts of capital to recapitalize overleveraged assets, create opportunities to purchase debt and distressed real estate assets at favorable risk-adjusted prices. Additionally, many of these assets (both debt and equity) will require the value- added and real estate operating skills possessed by Z-Co. in order to evaluate and/or execute on a business plan for these assets.

The principals’ experience, strong relationships, and skill sets make the firm uniquely positioned to take advantage of the current growth outlook for real estate fundamentals in Texas while there is an overall turmoil in the capital markets outside of Texas.

Development Assets

  • Acquisition of land at or below the market value
  • Development Plan for the acquired land should be in place
  • Land must be ready for immediate development with utilities and zoning

Asset Acquisition

  • Performing, sub-performing, and non-performing debt
  • Distressed properties
  • Value-added properties

Z-Co. is seeking debt and equity opportunities with the following characteristics

  • Assets in major market/gateway cities in Texas where Z-Co. has a presence or in-depth knowledge of the market
  • Distressed or sub-performing assets
  • Mid-sized transactions ranging from $5mm-$25mm of equity capital
  • Returns in the mid- to high-teens

Utilizing Debt Appropriately

Z-Co. believes that leverage should be employed at a level that provides a meaningful enhancement to investment returns but not be so high that a fundamentally sound asset will be put at risk during periods when leasing markets soften or capital markets become constrained.