Strategies

Brightshore created an internal platform, Tavalo Communities, to self-develop Build-to-Rent projects across the US; at present, there are eight such communities. With a focus on product innovation, flexibility, and relative affordability, Brightshore’s investment strategy merges the most attractive features of for-sale and multi-family living while providing an alternative to ownership against high interest rates.

Brightshore has an extensive track record of investing in land development and home building projects across the “Smile” markets in the US post-GFC. Brightshore acquires larger land parcels that are outside of the builders’ investment appetite (mostly due to the ‘land-light’ operating model adopted after the crisis), completes master planning and land development, and sells lots to homebuilders or constructs and sells homes to final buyers. The single family for-sale strategy is focused on targeted markets and assets with existing entitlements that would allow us to commence or restart activity in the near term and deliver new product to demonstrated current demand and pricing, with above average development margins.

Brightshore invests directly and with experienced partners in ground-up development and value-add multi-family opportunities in markets with robust prime renter cohort growth. Market selection is key, and Brightshore focuses on supply constrained sub-markets close to strong job generators and amenities.

Brightshore’s industrial focus is on self-development and acquisition of modern warehouse and distribution assets to meet local tenant requirements in strategic distribution hubs or population centers across the US. With a focus on 250,000-850,000 square foot projects, Brightshore pursues specialty real estate sectors demonstrating strong fundamental dynamics.

Opportunity Zones are designated, under-capitalized areas within the US that could benefit from economic development and job creation. The program provides investors with qualifying capital gains benefits in the form of tax deferral, reduction and elimination through investment in ground-up real estate development and redevelopment.

Brightshore’s office focus in Brazil is on building state-of-the art, Class A buildings concentrated in the heart of Faria Lima, the premier office district in São Paulo, and in Rio. These areas are where multinational companies are the leading source of demand, resulting in above average occupancy and rent growth. With deep in-house development capability, Brightshore predominantly pursues ground-up development with some limited acquisitions of buildings where we can add value.

Driven by growth in e-commerce, Brightshore pursues the development of Class A distribution centers and last‐mile fulfillment centers primarily in São Paulo in areas with good transportation access to large population nodes and the highest efficiency standards.

Over the last 15 years, Brightshore has developed a range of affordable, middle-income and high-end residential properties primarily in São Paulo, where there is a deep demand base. Structural factors, such as strong population growth, continued urbanization, rising living standards and a large housing deficit contribute to demand for housing that is less sensitive to economic cycles and supported by affordable housing finance programs.

Within the hospitality sector, Brightshore has focused its strategy primarily on acquiring and developing in locations that will benefit from future growth. Brightshore believes that there are opportunities for redevelopment and rebranding existing hotels in the luxury hotel segment that benefit from international corporate travel demand, for which supply remains limited.