Unique and Off-Market - Custom Crafted by G2

"A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty"


  • Clear Mission - Create Unique Off-Market Investment Opportunities: G2 aims to consistently generate superior returns on investments backed by commercial real estate and other hard assets while taking controlled risks throughout volatile market cycles. G2 executes its mission one transaction at a time by creating a unique, off-market investment opportunity that is only available to G2 and its investors. We triage a tall and wide funnel of offered opportunities; for transactions that appear to make the G2 cut, we then consider the initial offer presented by the sponsor in need of capital; from there we undertake rapid and intensive pre-due diligence of the sponsor, their business plan and all available collateral; for a precious few opportunities, G2 then presents the sponsor with a custom crafted counter offer to participate in the transaction on G2's terms.  


  • Specialty Focus - Unlocking Trapped Value as Safely as Possible: G2 unlocks trapped value by rolling up our sleeves and searching for worthy sponsors in control of high-quality assets that find themselves in need of "equity gap" capital. The equity gap arises when such sponsors find themselves short of the last bit of outside capital desired or needed to close their transactions. The G2 team has executed equity gap investments driven by the strength and confidence of certain sponsors willing to subordinate their valuable assets and rights to G2 to retain precious future upside returns. In other cases, G2 has executed transactions where sponsors were running out of time and risked losing their equity or opportunity. Regardless of why the equity gap is present, sponsors seeking to fill the equity gap are typically highly motivated and willing to offer rich pricing and contractual terms favorable to the capital provider that can fill the equity gap in time. This is where G2 steps in; specializing in equity gap situations gives G2 a unique advantage over more traditional lenders and asset managers competing to win transactions that fit into regimented pre-cast investment mandates. G2 has the experience, creativity, and deal structuring tools to expertly fill the equity gap. 


  • Broad Experience and Proven Track Record: G2's team has a proven track record as a structured direct hard asset principal investor. We have made structured direct investments across a broad spectrum of real estate asset classes including multifamily/work-force housing, student housing, multi-tenant medical office, credit-tenant medical office, micro-hospitals, retail centers, and hotel/hospitality assets. G2's team has taken several of these investments full cycle - successfully returning investor capital and delivering forecast returns. In several cases, G2's team has outperformed forecast return projections. G2's team also has direct experience restructuring its participation in investment assets to manage unanticipated market or regulatory events, to facilitate sponsor-partner opportunities and to manage partner-level distress. 


  • Off-Mandate Specialist: G2 aggressively pursues sponsor partners with strong asset-relevant experience in need of equity gap capital to complete the purchase, recapitalization or reposition of real estate assets that we deem investible on our strict metrics. Many compelling real estate investment opportunities in need of equity gap capital are regularly rejected by traditional real estate opportunity funds and mezzanine lenders due to overly rigid investment mandates and inflexible lending criteria. In cases where more flexible funds and mezzanine lenders are willing to grant exceptions, they typically have $15 to 20 million investment minimums per-transaction. G2 relies on its experience to identify worthy investment opportunities in the hands of good potential sponsor partners that are having a difficult time finalizing their capital needs with mainstream capital providers.  


  • Targeted Origination: In our search to find investment opportunities that meet G2's stringent requirements, we triage scores of potential investment transactions each month before we hand select a few for detailed preview. Potential transactions that make the cut: 1)  Are backed by hard assets (principally commercial real estate) with independently verifiable value and reliable current revenue streams or highly likely future revenue streams; 2) Exhibit explainable historical performance and/or future performance forecasts that make underwriting sense to G2 under both current market conditions and a series of simulated future market stress test scenarios; 3) Have a "story" - these are events or circumstances (positive or negative) relating to the asset, the owner or the acquirer - that motivate deal sponsors to seek flexible capital solutions delivered through custom structures to manage these events and circumstances; 4) Require capital of ~$1 to ~$10 million per transaction; this is a per-investment "check size" that is too small for most institutional investors and too large for our time-pinched sponsor partners to arrange.


  • Quantifiable Risks and Rewards: Having successfully completed a series of custom-structured equity gap investments, G2's team relies on its intensive hands-on direct due diligence process to identify and quantify the risks and rewards of each potential opportunity. We start with methodical underwriting of the specific asset in need of capital. We dive deep and run a comprehensive desktop analysis of asset-level operating and performance history; in-place and pending leases and major contracts; review of books, records, financial statements, bank records and tax returns; review and stress of appraisals and property condition reports; and review the terms of in-place or pending mortgage financing arrangements. We conduct a thorough on-site inspection of each asset. Then we tour and study the surrounding market area and survey comparable properties. 


  • Qualified Sponsor Partners: G2 spends considerable time with each of our potential sponsor partners to make sure that they have the right experience and adequate skills and resources to successfully execute their business plan. G2's team has managed investment assets through smooth and orderly market conditions, through acute market stress events, and during the dark days of the Global Financial Crisis. We will only back sponsor partners that we believe will be steady partners during good times and adaptable partners when negative volatility presents challenges.