Any good developer knows that working with a JV equity partner is a lot like a marriage, and if you want a happy marriage, it’s important to find the right match. For a growing list of developers, that match for a programmatic capital partner is the ARCTRUST Group of Companies.
ARCTRUST has a successful track record that was built on a lot more than just its ability to write a check. The firm has the resources, relationships and insights that come from having been in the developer’s shoes – all of which it now brings to bear for its developer partners. “We aren’t a company who just raised money to do deals, we are a real estate first group of professionals who understand development,” says Michael Ambrosi, COO at ARCTRUST. The company’s team has a deep bench of professionals who bring multi-disciplinary real estate expertise in areas such as development, acquisitions, financing, and all supporting services. “As developers ourselves, we are focused on the intrinsic value of the real estate that we purchase, develop or invest in,” he adds.
Founded in 1985, ARCTRUST is a vertically integrated real estate company that has been responsible for the development, acquisition, and joint venture funding of more than 500 properties with an aggregate value in excess of $5 billion. ARCTRUST manages a variety of different investment vehicles that have a strategic focus to make equity investments in ground-up and value-add development projects.
Development is in their DNA
Among the key factors that differentiate ARCTRUST from other equity capital providers are its people and its platform. “It’s not the contracts and covenants that develop property or create value – it’s the people,” says Ambrosi. Collectively, the firm’s principles have been operating together over the past 40 years, while the executive team members each have more than 20 years of experience and a proven ability to create deal structures that are unique in the marketplace.
“We don’t have a boilerplate form that must be used on all deals. We understand that every deal, every developer, and every sponsor is different,” says ARCTRUST CEO Gary Baumann. The company is able to recognize the needs of its sponsor and developer partners, and the team has the flexibility and skill to tailor investments for the success of the project, which ultimately brings success for the firm’s capital investment. “Having that view means there’s better alignment between our capital and your project,” he adds.
Another factor that helps align those interests is the executives’ personal experience in running every phase of a development as a sponsor. “We’ve been on the developer side of the table, and we understand that not everything is going happen in a straight line,” says Jason Kessler, ARCTRUST Chief Investment Officer. Sometimes, approvals take longer than expected and you need that extension. Or maybe the design has to shift to meet the requirements of the city or a key tenant. “If a development turns left, or if there’s a change that happens, we want to be part of the solution, not part of the problem,” explains Kessler. “Our response is ‘How can we fix it together?’”
“ARCTRUST’s approach to true joint venture developments and aligned incentives means they roll up their sleeves with their partners to solve challenges, whether they are soil condition issues or establishing a budget. We are all working toward the same goal.”
ARCTRUST equity programs offer “MORE”
ARCTRUST has named its joint venture operation The MORE Program, standing for Money, Opportunity, Resources and Experience. The MORE program offers capital and resources to strong sponsor partners developing residential, industrial, self-storage and retail properties. “In the macro environment today, each one of those elements – money, opportunity, resources and experience – becomes very important, and that’s why we say Sponsors may consider our equity ‘greener’ than that of our competitors. It isn’t just capital that ARCTRUST provides, it is capital backed with resources from a true JV partner, designed to improve execution and promote success,” says Chris LeCates, Vice President, Head Of Acquisitions at ARCTRUST.
That partnership extends to areas of expertise such as civil engineers, attorneys, and accountants. “We help support the developer with whatever it is that they need so that they can focus on value creation. Our services include in-house legal, architecture, environmental assessment, and engineering. The developers’ task, and their desire, is to be out seeking opportunities and producing value from those opportunities, which is beneficial for both of us,” says Kessler. “Our investment programs are not just a one-way street,” adds Baumann. “Developers bring projects to us, and we can also bring opportunities to them.”
Those resources don’t stop inside the company. In today’s market environment, challenges such as volatile construction costs and a much tighter lending environment have crippled good developments. ARCTRUST has the ability to leverage 40 years of relationships with regional and national banks to help its development partners or joint venture partners find the best loan for their project.
“I have been working together with ARCTRUST as a joint venture developer for over 10 years. Their professionalism, experience and support has allowed me to grow my business and together we have completed a pipeline of successful development transactions.”
Ultimately, ARCTRUST is looking to partner with developers and sponsors who see a good runway for growth ahead. With its strategic emphasis on a long-term relationship-driven model, ARCTRUST’s success is the success of its sponsors and joint venture partners. ARCTRUST offers MORE than just money!
This article was produced by The Real Deal’s Brand Studio Team in conjunction with ARCTRUST. For more information about working with our Brand Studio Team please click here.