Virtus exclusively focuses on property types that have historically been more resilient to economic and capital market cycles than conventional real estate classes. These classes of real estate all benefit from significant demographic trends and inuring social needs that persist irrespective of economic conditions or capital markets, such as:
In Virtus’ view, each one of these demographic trends generates demand for certain types of real estate regardless of the condition of the overall economy. This strong and consistent demand can provide an investor with greater downside protection than may be available in other segments of the real estate market.
Virtus has concluded that there are certain primary categories of real estate that meet this investment criteria:
Ownership of each targeted property tends to be highly fragmented, which creates two opportunities:
Finally, Virtus is active in property types that tend to have significant operational complexities that extend beyond the purview of traditional commercial real estate. This creates potential for skilled operators and investors to achieve levels of Net Operating Income growth that are more difficult to achieve in traditional real estate categories.