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Hartmann Development Management Group,  
For more than thirty years, HD has been providing access to commercial real estate through non-traded limited Partnerships and other direct investment programs. HDMG programs are designed to provide investors with four major benefits:
A stream of income

     ● Portfolio diversification
     ● Reduced portfolio volatility
     ● The potential for capital appreciation

HDMG invests primarily in income-producing, single-tenant or multi-tenant commercial real estate leased to high-quality, credit worthy tenants under long-term, net leases. We are also conservative to moderate in our use of financing on all our developments. HDMG has weathered diverse cycles in the real estate markets and seen property values and interest rates rise and fall a number of times. This experience has helped us refine our conservative investment strategy to what it is today.
  HDMG INVESTMENT STRATEGY
 
 

HDMG invests primarily in income-producing, single-tenant commercial real estate leased to high-quality, creditworthy tenants under long-term, net, net, net leases. We are also conservative to moderate in our use of financing.
Single-Tenant VS Multi - Tenant Properties
HDMG focuses on acquiring single-tenant & Multi, freestanding properties. A single-tenant property has one tenant under one lease, and therefore offers a more stable and predictable stream of rental income, hence if the tenant leaves so does the cash flow as compared to traditional multi-tenant properties with high quality tenants the cash flow will be reasonably stabilized.
High-Quality, Creditworthy Tenants
The tenant financial review is one of the most important steps in the HDMG underwriting process. We seek tenants that typically have:

     ● High credit rating
     ● A proven financial track record
     ● Earnings growth and momentum

Long-Term, Net Leases
HDMG believes one of the best ways to reduce potential interruptions to rental income is through long-term, net leases. A "net" lease is structured so the tenant is responsible for the majority of the costs of maintaining the property.

 

 
 
Typical Commercial Lease
Typical HDMG Lease
 


Length of Lease

3-7 Years

10+Years*
 
 
Type of Lease

Gross or NN

NNN
 
 
Responsible for Taxes & Maintenance

Landlord

Tenant
 

* Per HDMG acquisition criteria, see a HDMG prospectus for more details.

  Conservative Finanings
 

An HDMG-sponsored partnership targets a 50% leverage ratio to maximize potential total return to partner investors. While leverage increases risk and therefore may impact a HDMG Properties investment performance, by industry standards, a 50% leverage ratio is considered conservative to moderate.
The use of financing potentially increases a HDMG Partners investment business risks, potentially hinders the partnerships ability to make distributions and may decrease the value of your investment.

UNDERSTASNDING PRIVATE REALESTATE PARTNERSHIPS VS REALESTATE INVESTMENT TRUST
How Does a REIT Work?
A common way to invest in commercial real estate is through a Real Estate Investment Trust (REIT). An important advantage of a REIT is that much of the income is not taxed at the corporate level. Therefore, more income is potentially passed on to the investor.
 


A REIT will pay quarterly or yearly distributions with heavy load and
management & brokerage Fees The Features and Benefits of a HDMG Private REP



 

HDMG Private Realestate
Private Partnership
Potential Investor Benefit  

 

 

 


Monthly distribution of rental income
Not correlated to most major asset classes
Investment in high-quality real estate over long term

Monthly stream of income to investor Portfolio diversification through a non-correlated asset Potential for long-term capital appreciation
   
 
There is no guarantee that investors will receive a distribution, and distributions paid may be derived from proceeds from the offering, from borrowings, or from the sale of assets. This is a hypothetical example and may not reflect the actual workings of the REIT.

A HDMG Realestate Private Partnership may not achieve its objectives. In addition, an investment in a HDMG Private REP is not suitable for every investor. Potential investors are urged to review the HDMG prospectus and consult their financial advisors or representatives regarding the potential benefits and risks associated with an investment in HDMG PREP. Because no public market currently exists for the shares of HDMG PREP, an investment will have limited liquidity.