our philosophy key elements
Somera's investment objective is to preserve capital, produce attractive quarterly cash-on-cash yields, and create long-term value for our investors by executing repositioning, redevelopment and recapitalization strategies. We focus on acquiring fundamentally sound properties in strong locations within submarkets with favorable attributes. A portion of our investors' return on investment is achieved through the use of moderate leverage, which has ranged between 50% and 75% of the value of an investment.

Somera believes that the inefficient nature of real estate markets provides attractive buying opportunities, and that the key to success is the ability to access opportunities in local markets and manage the value creation process through a successful realization event. We have significant experience managing relationships with local real estate operators who are positioned to identify mispriced assets and value enhancement opportunities and with whom we execute repositioning and recapitalization strategies to add value to our investments.
Knowledgeable and Experienced Operating Partners.
We typically partner with local real estate operators that have special knowledge of a particular property type and/or geographic area. We perform extensive due diligence on our operating partners before proceeding with a transaction. When we have a good experience with an operating partner, we try to become their primary source of capital so we can participate in their best projects.
Carefully Designed Investment Structures.
We structure our agreements with our operating partners so their financial interests are aligned with ours. Our operating partners are generally required to contribute a meaningful amount of capital to the investment. We minimize their upfront fees and offer incentive compensation to reward them for a successful investment. We structure our joint ventures so that Somera and our investors receive preferences on distributions of both income and capital appreciation.
Hands-On Management of Our Operating Partners.
We intensively manage our operating partner relationships and, drawing from the diverse expertise and resources of our management team, offer them guidance and assistance when developing and executing business plans, asset strategies, and financing strategies.
Value-Added Investing.
We target undervalued opportunities with existing cash flow from which a substantial portion of the profit can be created during the early stages of the investment through repositioning, redevelopment and/or recapitalization.
Diversification.
We build risk-controlled, diversified real estate investment portfolios.
Alignment of Interests.
All of Somera's principals have made meaningful personal investments in Somera's real estate investments, and their compensation is tied to the successful performance of the investments.