Bancroft Capital is a privately held real estate investment firm based in Manhattan Beach, California. Since 1992, Bancroft has succeeded in bringing outstanding performance and integrity to real estate investment. Our philosophy: make a sizable contribution of our own funds and strive to align our interests with those of our investors. Bancroft's five partners are committed to responsive communication with our investors, our brokers and our tenants, building relationships that mean the advantage in a competitive real estate marketplace.
The company's primary focus is the acquisition of commercial and mixed-use real estate displaying substantial upside potential and attractive cash flow for institutional investors and company-sponsored private partnerships. Specific investment emphasis is placed on assets located in the western United States secured by suburban office, light industrial, warehouse, laboratory and R&D buildings. Previous Bancroft institutional partners range from investment banks to international funds and include Harbert Management, Credit Suisse First Boston, ING Barings, Massachusetts State Carpenters Pension Fund, Investcorp and CalPERS. To date, Bancroft Capital's acquisitions total over $500 million.
Current minimum investment levels range from $50,000 for Company sponsored private partnerships to $10 million for institutional partnerships. Investment with Bancroft Capital is intended for accredited investors with a net worth of at least $1,000,000 and/or an annual income of $200,000. The summary contained within this site does not constitute an offer to sell or a solicitation of an offer to buy any securities. Financial results are unaudited company estimates only and are not necessarily indicative of future results which may vary substantially from those set forth herein.
Bancroft's primary objective is to create value for the investor through the identification and acquisition of real estate assets that provide attractive, above market yields and display significant upside potential. The Company specifically targets undervalued real estate in the following categories: suburban office, light industrial, warehouse, laboratory and R&D buildings.
Since its inception, Bancroft Capital has pursued a strategy that has emphasized both investment and asset management for its clients. We maintain extensive ties to real estate professionals and lenders throughout the western United States to ensure complete and comprehensive coverage of all aspects of an investment and to provide the best possible combination of investor returns and investment safety.
Bancroft believes that value in real estate can be created in three ways:
Bancroft also believes that because the U.S. real estate markets are going through a transitional period, attractively priced opportunities exist in stable, first tier markets and strong secondary markets. Our strategy is to take advantage of this transitional period by exploiting inefficiencies or dislocations in the marketplace. These include acquisitions involving: a motivated seller, an out-of-favor asset class or size, and/or the need for aggressive leasing/management.
A value strategy should not be too narrowly confined to a specific property type, location or size. The condition of real estate markets and different property types within our target markets are constantly changing. Bancroft's strategy is designed to be flexible in order to capitalize on those changes. The most critical element of our strategy is to buy at the right time and the right price.
Toward that end, we will not complete a transaction in haste or overpay for an asset. We believe that purchasing an asset below replacement cost provides our clients significant protection against downside risk and increases the likelihood of achieving significant capital gains.
Bancroft will pursue a value investment strategy under which the assets acquired have one or more of the following characteristics:
As implemented, Bancroft Capital's aggressive pricing strategy allows the Company to structure its partnerships to both comfortably service debt and provide attractive cash-on-cash and holding period returns to the investor.
Finally, Bancroft is committed to maintaining a "hands on" approach through a core group of partners with complementary skills. By keeping our costs at a minimum, we don't feel pressure to acquire an asset in order to justify general and administrative expenses. We have created a trustworthy "virtual team" in each of our focus submarkets to lend us local expertise in the disciplines of brokerage, property management, legal, environmental, engineering/structural, architectural, construction, civil issues and more on an as needed basis.
Bancroft Capital has been successful over the years by focusing the efforts of our organization. We remain disciplined in three target criteria: geography, asset type, and risk/reward profile.
Bancroft maintains relationships throughout the western United States. We will typically select a submarket with attractive dynamics and purchase multiple properties, thereby focusing management attention and achieving economies of scale for local services.
Bancroft typically acquires suburban office, light industrial, warehouse, laboratory and R&D buildings. We also develop office and mixed-use residential properties. We do not consider investments in retail, hotel, multi-family, CBD-office or unentitled land. We strongly prefer triple net (NNN) leases.
Attractive Risk/Reward Profile
Bancroft seeks to enhance the risk/reward profile of our partnerships by investing in assets with the following characteristics: