After a history of being self-financed, Centra Capital Partners is now offering the opportunity to accredited investors to invest alongside us in our unique brand of community-focused developments across the United States.
Our business model is rooted in strategic investment, a crucial element for success in today's high-rate environment. Amid volatile inflation, global instability, rising interest rates, and a steep decline in value for many commercial real estate assets, our approach is not only timely but also aligns perfectly with investor interests, especially in the context of current market challenges in commercial real estate.
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Resilience+Adaptability
Our approach is built on a foundation of resilience and adaptability, enabling us to navigate the complexities of high rates, escalating material costs, and labor challenges. This adaptability is more crucial than ever in the current economic climate, where the ability to withstand and leverage market fluctuations is key to success in a volatile economy.
In it for the long haul
Centra Capital Partners’ strategy is centered around growth and delivering outsized returns to investors while protecting their capital. We actualize this vision through a focus on identifying and capitalizing on unique market opportunities.
Also important to us is an emphasis on conservative underwriting, proprietary management systems, and our first and foremost focus - building communities where families can live, thrive, and build memories for the future.
Building more than homes
Centra's approach to business is not just about building ‘houses’ or ‘properties,’ it's about creating homes and communities. This holistic view extends to every aspect of our operations, particularly the development of single-family home communities with shopping and recreational facilities that enhance neighborhoods. Each project is seen as not just an integral part of the larger community but as a standalone community where residents will raise families and who may live there for generations, creating lifelong memories in the homes we build for them.
Centra’s Investment Strategy
Centra's investment strategy involves a conservative underwriting process, understanding individual markets, and recognizing ongoing needs even in challenging times. For instance, during the Global Financial Crisis, Centra invested in distressed assets, acquiring portfolios of assets from banks that were significantly undervalued compared to their original worth.
We were also able to acquire the local arm of a real estate development company our principals had been involved with that had a small real estate portfolio but, more importantly, also had the infrastructure we needed to build a company – offices, equipment, operating systems, and, of course, a well-trained, experienced and professional staff. This strategic acquisition during the company’s early days played a crucial role in our growth, allowing us to establish a strong foundation and immediately start functioning with a full set of resources and talent.
Today, we specialize in ground-up real estate development, including residential properties and associated commercial, recreational, and retail spaces, and we also invest in some value-add apartment communities. Whatever we invest in, our primary goal is to create and enhance community spaces for residents and home-owners.
Strategic Asset Acquisition
During economic downturns, we seek to capitalize on opportunities to purchase distressed assets at reduced prices. This approach allows us to acquire valuable properties at steep discounts that can be developed or managed for long-term gains.
Geographical Familiarity
Our investment decisions are heavily influenced by a granular understanding of local markets. We primarily operate in areas where we have established knowledge and connections, like Minnesota, Utah, California, and Florida, and before expanding into a new market, we conduct extensive due diligence before deploying capital, often leveraging the personal market knowledge of our principles.
Market Expansion
While maintaining a strong presence in familiar markets, we also explore opportunities in new areas. Once we are satisfied that a new market is worth the investment, we establish satellite offices to deepen our local market insights, ensuring informed investment decisions and facilitating entitlement and permitting processes.
Our investment strategy isn't a linear path; it’s a vibrant story mapped across a landscape of bustling city corners and lively suburban developments—each property meticulously woven into the local community’s tapestry. As we sculpt apartment complexes, build homes, and revitalize strip malls and recreational facilities, we pour our collective heart into ensuring these structures pay homage to the community's well-being.
Adapting to Current Market Conditions
As the housing crisis in America has driven demand for more homes, Centra has shifted its focus to building workforce housing that is affordable to all. Recognizing the reduced purchasing power of buyers due to higher interest rates, we are now concentrating on creating homes that are financially accessible to an even larger segment of the population.
This pivot in strategy is in response to the evolving needs of the market while allowing us to maintain our commitment to community development.
Our approach to real estate development goes beyond just our balance sheet or various construction projects; we aim to create communities that cater to all aspects of life, including residential areas, shopping centers, and other community facilities. This ensures that each project is not just a standalone structure or development, but a part of a larger, flourishing community.
Thriving in Challenging Times
Centra's resilience in difficult economic times is founded on our ability to adapt to changing market conditions. For instance, during the Global Financial Crisis (GFC) of 2008+, we focused on non-performing loan acquisitions and real estate owned (REO) properties, working with banks to reposition these distressed assets. This not only provided us with valuable opportunities but also contributed to community development and prevented the blight footprint that inevitably follows a failed real estate effort.
The lessons learned from the GFC inform our decisions today, both in terms of finding opportunistic acquisitions during a downturn, as well as by keeping an eye firmly on protecting investor capital by not overexposing our investments to too much debt.
Distressed Acquisitions
When the company was founded in the aftermath of the GFC, our portfolio was relatively small, valued at around $20 million. Despite these modest beginnings, our decisions, coupled with efficient operations, quickly led to significant growth over the years. A key factor in kick starting this growth was our focus on distressed assets during the GFC.
For example, we acquired a portfolio from a bank of 450 properties for $12 million, which had a book value of $140 million at foreclosure. This acquisition helped us grow quickly. Through leveraging our banking and other industry relationships we gained a reputation for reliability and trustworthiness that continues to bring opportunities to us for our investors today.
One of the key examples of Centra’s community-centric projects is our work on infill developments. We have successfully transformed areas with underutilized or distressed properties into vibrant communities.
For instance, one project involved redeveloping a site that previously housed city offices and dilapidated apartments. Centra cleaned up the site, which had soil contamination and built 137 new homes, meeting the specific needs of the area. This not only solved a significant problem for the seller, a bank, but we were able to revitalize the community and provide outsized returns for our investors.
Workforce Housing
Another example is our approach to building workforce housing that is affordable to middle America in response to market shifts. Recognizing the reduced purchasing power as the economy grew stronger in the years following the 2008 crash, and particularly now in the new, higher interest rate environment, our focus on creating homes that are financially accessible to a broader segment of the population is proving increasingly successful.
This pivot not only addresses a critical need in the housing market but also positions our investments to remain valuable and in demand for the long run, particularly in challenging economic times.
Learn more about Centra's value proposition and investment thesis in this short video with Owner & Founder, Dale Wills
The Future of Real Estate Investment with Centra
Centra's approach is simple. Understand and adapt to market dynamics, focus on building communities, and stay true to a long-term perspective that maximizes capital protection while still delivering competitive, risk-adjusted returns to our investors.
This involves a focus on markets where we have institutional knowledge or personal ties, allowing us to capitalize on unique opportunities while avoiding overly-saturated or regulatory-heavy areas. In addition, our commitment to being responsive to market shifts is a key aspect in safeguarding and growing investor capital.
For investors looking to engage with Centra's upcoming projects, there are ample opportunities. Our investment model is designed to change when needed, focusing on areas with a high demand for housing and other real estate needs.
With the market currently shifting due to factors like rising interest rates, Centra is pivoting towards building affordable workforce housing, addressing the pressing need while offering investors a chance to be part of socially responsible and financially rewarding projects.
Centra’s 5 Core Values
Centra's business philosophy is anchored in five core values:
- Do Right.
- Accountability
- Compassion
- Humility
- Growth
These values are not just theoretical but are actively practiced in our dealings with team members, contractors, investors, and the communities we serve. The emphasis on individual growth, both professionally and personally, is a key component of our philosophy, and we encourage team members at every level to engage in continuous learning and self-improvement.
The Bottom Line
Our adherence to our core values: integrity, accountability, compassion, humility, and growth, drives our success in creating value for both communities and investors. Our strategic vision for long-term growth, coupled with our granular understanding of how and why markets move, allows us to identify and capitalize on unique opportunities, delivering substantial returns for investors in the process.
Centra has an agile investment strategy, is responsive to economic shifts, maintains investor confidence and safeguards capital. Our consistent record of growth, shown through strategic acquisitions and operational efficiency, positions us for continued success even, and particularly, through market downturns.
As we look to expand our footprint across the United States, we invite you to join us in this journey of building better communities. Adaptability in the face of market changes, commitment to community development, and a proven track record of growth all make Centra an attractive option for investors seeking to make a meaningful impact while achieving strong returns.
The future of real estate investment with Centra is not just about financial gains; it's about being part of a movement that values community well-being and sustainable growth.
