Strategy
VDP concentrates on developing, and managing small to mid-cap development projects, along with existing cash generating assets balanced across multiple sectors and return profiles. VDP’s target return profile ranges from value-add to opportunistic. In certain exceptional circumstances, core-plus type returns are targeted on standing assets with limited repositioning potential.
There are numerous micro locations and investment themes that have been overlooked by much of the investment capital that clusters around the traditional, large-cap market. Our strategy does not seek to change the skyline or take preventable risk; it is driven by empirical research on investment opportunities that will yield above market returns.
VDP’s investment thesis concentrates on developing or acquiring properties, generally less than $100 million in total cost, a segment currently offering a wide array of unexploited opportunities. Historically, this segment has done particularly well, given the simple fact of Manhattan Island’s finite footprint and the relentless demand created by the desirability and advantages of living and working in New York City.
Residential development and investment is the sector where we currently see the most opportunity. New York City’s luxury condominium market has seen significant softening since late 2016. This has been exacerbated by the effects of the coronavirus pandemic, with a mass migration of the City’s elite working population to the Hamptons, Florida, Aspen and other traditional second home destinations. There are likely to be significant post pandemic affects, including an aversion to living in high density, multiple unit per floor residential towers. Bulk condominium sales and a surge in interest for townhomes are just some of the recent opportunities VDP is exploring.
The Hamptons has been a significant net beneficiary of the pandemic with many New York City families choosing to live there for the duration of 2020 and some beyond that. This has taken the Hamptons a lot closer to being a real year round lifestyle destination. Development of single family homes is a very vibrant market. There are also a number of very attractive commercial investment opportunities in the Hamptons.
VDP’s long-term objective is to become a leading, niche property development and investment management company in the NYMA area.
History
After many years working with a multi-national real estate development company Capital Partners, Vault Development Partners was launched in 2017. Focusing on opportunities in the greater NY metropolitan area, VDP has $50,000,000 of real estate under development in New York City and Eastern Long Island.
The team has a strong institutional pedigree in both real estate development and professional advisory services in real estate.
Founder
Robert is a founder and the CEO of Vault and is responsible for deal origination and day-to-day project management.
From 2012-2017 Robert served as a senior executive of Capital Partners. As the CEO of its U.S. operation and Global General Counsel, Robert had a unique and hands-on view of the development cycle. Robert started his career at Shearman & Sterling LLP as a private equity fund lawyer.
