Menlo Equities recognizes that every property has its own set of challenges, risks, and opportunities. Menlo Equities separates perceived risks from actual risks in its underwriting process and seeks to actively manage actual risk through pricing, financial structuring, and asset management. Our team has valuable insight into how capital markets affect real estate value and liquidity, a critical issue in determining property acquisition and disposition criterion and portfolio composition.
This expertise is also of significant value in determining the appropriate timing and method of implementing exit strategies. Recognizing the near-term peak in Silicon Valley property values in 2000, Menlo Equities sold nearly 30 percent of its Silicon Valley portfolio in June through August 2000—disposing of Class-B properties with tenants of lower credit quality. In addition, Menlo Equities sold 70 percent of its holdings during the cap rate compression era of 2004–2007.
