Boston real estate veterans Mark Dufton and Scott Oran have formed Dinosaur Capital Partners LLC to invest private equity in office, industrial, retail, multifamily, hospitality, mixed-use and parking properties from $3 million to $100 million. Primary target markets are the Northeast and Mid-Atlantic, with other major markets east of the Mississippi considered secondary targets.
Dufton and Oran most recently co-headed Gordon Brothers Group's real estate investment division. Dufton previously was a senior executive with DJM Realty, Gordon's real estate advisory affiliate. Oran formerly ran Morgan Stanley's Boston real estate office and was responsible for its real estate investing in the Northeast and Mid-Atlantic.
‘We believe superior risk-adjusted returns can be achieved in all parts of the real estate cycle through careful asset selection and appropriate financial structuring," Dufton and Oran say in a company statement. "Careful asset selection means we're picky about the properties and locations we choose and the people we do business with. We look for the best in both and place a premium on integrity and transparency."
Dinosaur's focus is on making real estate investments in distressed situations, not distressed assets, the firm adds.
‘We believe the ongoing re-pricing of risk will create a historic buying opportunity, with real estate values trending to 45 percent to 55 percent below peak pricing," the company statement continues. "At these price levels, cash yields are attractive, and the possibility of capital appreciation is real."Â
Dinosaur's multi-pronged investment strategy emphasizes acquiring core assets with underlying cashflow, opportunistic assets requiring value enhancement, performing or nonperforming loans, as well as taking preferred equity positions to recapitalize real assets.
SOURCE: Dinosaur Capital Partners