Investment Philosophy

Park Capital Holdings invest in highly selective commercial real estate assets to generate passive income, capital appreciation, and lucrative tax benefits for our partners. We believe that the right property can provide endless opportunities if managed and leveraged sophisticatedly. Innovative technology, extensive market research, and comprehensive due diligence allows Park Capital to mitigate risk enabling them to provide safe and secure investments.

Investment Objectives

We acquire properties that offer the opportunity to invest on favorable terms. We look to add value to the properties by making improvements, repositioning, marketing, developing, regulatory entitlement, and/or financing. For example, a property may be made more valuable by improving its appearance, reducing its operating expenses, expanding its capacity, making renovations according to market standards, increasing rents to market standards, catering to a more upscale market segment, arranging a zoning change, filing a petition under rent-control, federal housing programs, negotiating more favorable financing by lowering interest rates, providing a lower down payment, longer amortization schedules, and in the case of a vacant or underutilized property; erecting an income-producing building.

We strive to obtain assets with a combination of both current cash flows and a potential for capital appreciation through not only market growth but also income growth. Not every asset will contain a perfect balance of these characteristics; in fact, some assets may be skewed far in the direction generating current heavy cash flows all the way to complete upside in equity growth. We tend to use a unique game-plan for each individual property which allows us to generate maximum profit on our investment horizon.

Property Types

We welcome a broad range of commercial real estate assets. Commercial real estate can include: office, retail, multi-family, land, industrial, or special use purpose properties. If land is acquired, the sole purpose would be to develop real estate through new construction.

Geographic Range

We focus our activities in the Central Valley of California, Saint Louis, Missouri, and Dallas-Fort Worth, Texas. We have complete teams and systems in place in these demographics. Our teams range from brokers, property management groups, and special relationship banking.

Within these metropolitan areas, we tend to target desirable locations. Intricate characteristics vary by the type of assets under consideration, however economic and population growth tend to be favorable indicators for Park Capital Holdings.

Investment Size

We aim to raise investment capital of a minimum of $500,000 – $2 million, per partnership. Our target level of cash commitment per partnership allows us to be large enough to be above the range of most ‘mom & pop’ buyers, and, at the same time, small enough to be below the range of most institutional investors. Where the array of potential competitors is limited, returns are typically greater. Assets requiring that amount of capital enables us to engage in an unique field with barriers to entry. Park Capital’s experience and banking relationships allows us to be competitive and profitable amongst some of the biggest players.

Time Frame

We usually expect a two-year stabilization period. This time is allocated to allow us to implement our strategies to increase value and stabilize income.

Whether it is a new-construction or complete remodels, in year three we should have steady cash-flows at market rents. At the end of year five, we aim to do a cash-out refinance if economic conditions are favorable. We expect to hold and maintain the asset for the foreseeable future. We will only liquidate an asset if we have the opportunity to replace it with a larger and safer investment. We want our partners to be able to pass down their equity stake in the partnership to their next generation.

Investment Structure

Each Park Capital fund is a unique limited partnership. Park Capital assumes the role of the general partner and manages the day-to-day operations.

Depending on the funding size, equity is assigned to limited partners accordingly. Each limited partner receives quarterly reports and payouts in proportion to their equity stake which is subject to their contribution. At the end of the year, each partner receives a K-1. This structure also allows partners to maximize their capital returns while receiving tax benefits with zero liability.