“It’s well known that real estate can be a very cyclical business,” note Louis and Joel Kestenbaum, respectively, Fortis' Chairman and President. “Our opportunistic residential real estate investment strategy starts with the premise that to be consistently successful, we must focus on markets with buyer demographics that are the strongest and most dynamic over time, while providing opportunities for substantial growth.”
According to the Kestenbaums, this is the reason why they target and acquire both properties and developable land in the strongest demographic and economic markets. “These are the locations that permit our company to be creative in efficiently operating, designing and developing the most attractive projects.”
Louis Kestenbaum and Joel Kestenbaum also explain that doing business in these most desirable markets is not easy. There are many strong barriers to entry. “To be able to successfully complete projects on time and on schedule, you’ve got to have a very significant amount of three key things: capital, effort and capability,”
For example, Jonathan Landau - - Fortis’ CEO - - is a highly experienced expert with a deep background in tax, transactional and corporate law in the real estate field. Terrence Storey, Fortis’ Chief Financial Officer, also brings substantial real estate experience as a real estate investment banker and real estate attorney.
Fortis also targets multi-family residential real estate projects that involve notable levels of difficulty - - ones other developers may avoid. As such, Fortis often is able to acquire these deals at below market prices, after they have exerted the necessary extra effort and diligence in analyzing and identifying the underlying economic opportunities. This is how Fortis is able to achieve high risk-adjusted returns from its investments.
There is another major differentiator in Fortis’ strategy regarding multi-family residential real estate investments:
“Fortis’ extensive experience in residential development and ongoing relationships with the best architects translate into the most efficient and desirable building designs, unit mixes and unit / floor layouts in the industry. The Company’s project managers constantly monitor all phases of construction with a critical and knowledgeable eye for every detail, on every level, to ensure the highest quality construction,”
Louis Kestenbaum sums up Fortis’ residential real estate strategy this way: “Our executives work cohesively with project partners and service providers to source and acquire the most attractive properties, operate, reposition and/or develop them creatively to their full potential, and manage them diligently to ensure that our investments achieve and maintain maximum value and profitability.”