HIGHLAND Financial Capital Group (HFCG), established in 2002, is a real estate investment firm utilizing private investment strategies to secure commercial and residential real estate. HFCG currently serves more than 100 investors, has invested over $45 million in commercial real estate, and has managed over 250 thousand square feet of space in over 160 properties within the metro Atlanta area. Sabi Varon founded the company based on a disciplined real estate investment philosophy which has been the guiding compass of the company’s core attributes for more than 25 years.
Today, HFCG offers a variety of real estate investment products which diversify and
enrich investors’ portfolios.
The company’s primary objective is a two-part approach that focuses first on creating enhanced assets, values, and cash flows, while ensuring long-term appreciation of its investors’ base.
HFCG solicits and acquires capital from private investors and uses that capital along
with structured and favorable financing to secure undervalued commercial real estate
assets. HFCG also uses the investments to issue documentation affirming the terms
of the investment transaction which leads to a favorable return on investment for the investors.
The current market fluctuations create unique opportunities to take advantage of
under-valued assets. Regardless of any market instability, history has shown that real
estate values ultimately rebound. However, individual investors, with only their own
funds to work with, are limited in the impact in which they can take advantage. Along with this, an investment in a large public REIT leaves an investor feeling little connection to the investment. HFCG, therefore, offers the best of both worlds:
Through combining all investment capital, funds are collectively disbursed for development, purchases, and re-development projects. These porperties and projects will all be identified as having strong upside potential, and will be seen as too small for large REITs and Hedge funds; or too large for an individual investor.
For this purpose, HFCG has established a $10,000,000 Real Estate Fund through private investment capital to acquire and help finance current real estate ventures. This fund will be utilized as the foundation to a greater future access of capital. Guarantors have a choice of two diverse types of investment opportunity:
• The first opportunity is offered exclusively to accredited investors. This opportunity
offers private equity participation secured by a property lien. A projected IRR is
estimated at 20%.
• The second opportunity is offered exclusively to Georgia accredited investors.
This opportunity offers promissory notes with an interest rate of 11% and is supported
by a collection of assets which will reduce the risk factor of poor performance of a
single individual property.
As market fluctuations are taking over, new trends are forming. One of which is the growing demand for small commercial condominium ownership. This business model is a testimonial to the immensely successful real estate concept known as the Business Condominium. It presents a unique opportunity for small business operators who are accustomed to high rents, inflexible lease terms and lack of affordable ownership opportunity. Instead of paying rent, the new model offers business owners a professional affordable, simple option. . . retail and office
The growing demand for small commercial ownership stems from the following issues:
1. Price point for a self-standing building usually exceeds the buying power of a small
2. In light of the recent economy changes many businesses feel the need to own and
3. Many unemployed people will resort to starting a new business and will prefer an
4. The unique lease/purchase structure gravitates potential buyers towards purchase.
5. SBA financing is widely available.
HFCG, wish to acquire commercial real estate which will fit the description and need for a small business owner/operator, and which can be easily modified to accommodate their business condo needs. Once acquired, HFCG will apply its sales and finance management team to reposition the asset for the individual sale of the various units. HFCG is planning to stabilize the asset by applying long-term lease/purchase agreements to those units, which are not an immediate cash purchase. In essence, while our first intuition is to sell, we would continue
our marketing efforts to the rental community while we leverage on the sector of clientele who desire to purchase their unit. This win-win marketing combination will ensure a high degree of occupancy.
HFCG’s exit strategy varies among its different investment programs through a refinance and/or a sale of the property. In all cases, HFCG’s primary focus is to meet its investors’ objectives of preserving, protecting and returning invested capital.