OUR VALUES
Our reputation will always be paramount and drives our approach to conducting business. It takes twenty years to build a reputation and five minutes to ruin one.
We commit to always act with integrity, honesty, transparency and mutual respect at the forefront of every decision we make or action we take.
We are focused on establishing and growing meaningful relationships with a consistent focus on earning repeat business with longstanding clients and vendors.
We will always act in the best interests of our investor base as a fiduciary and steward of their much appreciated and earned capital commitments. Capital preservation is at the forefront of our investment evaluation.
We are always seeking to innovate and implement new technology, systems, and operations to enhance our value proposition and improve our efficiencies.
We will strive for excellence in everything that we do, seeking to outperform our peer set and provide compelling risk-adjusted returns to our investor base.
REPUTATION
Our reputation will always be paramount and drives our approach to conducting business. It takes twenty years to build a reputation and five minutes to ruin one.
INTEGRITY
We commit to always act with integrity, honesty, transparency and mutual respect at the forefront of every decision we make or action we take.
RELATIONSHIPS
We are focused on establishing and growing meaningful relationships with a consistent focus on earning repeat business with longstanding clients and vendors.
FIDUCIARY
We will always act in the best interests of our investor base as a fiduciary and steward of their much appreciated and earned capital commitments. Capital preservation is at the forefront of our investment evaluation.
INNOVATION
We are always seeking to innovate and implement new technology, systems, and operations to enhance our value proposition and improve our efficiencies.
SUSTAINABILITY
We approach all building and systems enhancements and improvements with thoughtfulness around sustainability, seeking to limit our carbon footprint and improve energy efficiencies.
EXCELLENCE
We will strive for excellence in everything that we do, seeking to outperform our peer set and provide compelling risk-adjusted returns to our investor base.
OUR MISSION
RELATIONSHIP ORIENTED.
PERFORMANCE DRIVEN.
Hammond Capital prioritizes Value-Add Acquisitions with Infill development potential. Our primary aim is to capitalize on misunderstood or under-appreciated, well-located + functional light industrial assets.
OUR THESIS
Limited Supply
•High barriers to entry, replacement costs for this product profile in target markets often exceed $200+ PSF
•New supply concentrated in larger bulk product (250k+ SF equates for 60%+ of U/C), limited new shallow-bay supply
•Very tight availability, current occupancy for <100k SF is _% nationally
Outsized Demand
•__% of 2021-2023 absorption in Phoenix was for transactions <100k SF,
•__% of 2021-2023 absorption in DFW was for transactions <100k SF
•Vast majority of user demand in target markets remains in the smaller 20k-50k SF range
Fundamental Tailwinds
•Onshoring/nearshoring and the resurgence of domestic high-tech manufacturing driven by global geopolitical risk, the CHIPS act, and improper IP regulation and enforcement in China
•Evolving inventory management practices driven by the growth in e-commerce, last mile and omnichannel distribution, and same-day consumer delivery demands
Limited Competition
•Less deal exposure leads to thinner bid sheets and less competition
•Smaller transactions equate to same amount of work but less gross $’s
•Less investor focus and competition for non-pure logistics light industrial product
Outsized Rent Appreciation
•%__ avg annual rent growth the past 5 years for light industrial, --% projected rent growth next 5 years
•Rapid rise in interest rates curtailed new construction, infill land costs & scale inefficiencies to construct smaller shallow-bay product has led to supply constraints that continue to drive outsized rent growth
Inefficient Space
•Private, less sophisticated non-institutional Sellers
•Less sophisticated intermediaries with shallower networks and less efficient marketing processes
•Assets are unloved and undercapitalized; they are not institutionally managed and maintained
•Inefficiencies lead to higher likelihood of sourcing assets that can be acquired below inherent value
Ride /rīd/ - verb. “Be carried or supported by (something with a great deal of momentum).”
R.I.D.E
THE FUNDAMENTAL MOMENTUM
R
REAL ESTATE
- Historical and projected Rent Growth
- Construction / inventory and absorption
- Historical and projected Vacancy
- Comparable asset sales and leasing
- Transaction volume and liquidity
- Barriers to Entry, land and construction costs
I
INFRASTRUCTURE
- Airport and rail infrastructure
- Proximity and access to gateway and port markets
- Interstate & highway infrastructure, accessibility and travel times
- Institutions + universities, research centers
- Entertainment + Arts, leisure and tourism, drive quality of life
D
DEMOGRAPHIC
- Historical and projected population growth
- Median Age, millennial movement (18-hour cities)
- STEM occupation density
- Median Household income and Wage Growth
- Average Household education attainment level
E
ECONOMIC
- Projected GDP Growth
- Historical and Projected Job Growth
- Corporate Relocations
- Manufacturing Hubs (e.g. Intel, TSMC, TI, Samsung, Northrop Grumman)
- Low SALT States/Municipalities