HGI's investment objective is to achieve superior risk adjusted returns through opportunistic real estate or a real estate investment with an IRR target of approximately 15%.

Real Estate Investment Considerations:

• Identification and creation of opportunities
• Minimization of risk through diversification and careful investment structuring
• Balance current return and capital appreciation
• Intermediate Term, two to seven year holding periods, with average holding ranging from three to four years
• Clearly defined exit strategies for each real estate investment

Capitalize on Market Dynamics and Inefficiencies – HGI constantly monitors the real estate markets, identifying themes by asset class or geography. By focusing on these themes, HGI has been able to invest ahead of trends.

Favorable Current Cash Returns – HGI targets investments in assets that provide its investors with stable, favorable current cash returns.

Create or Exploit a Competitive Advantage – HGI believes that its reputation, built over many years, combined with its extensive network of relationships provides HGI with proprietary transaction opportunities and a competitive advantage in many situations.

Conservative Underwriting – HGI pursues a disciplined real estate investment approach identifying attractive opportunities with significant upside potential and controllable downside protection. HGI utilizes rigorous due diligence, conservative assumptions and careful assessment of downside scenarios before acquiring a property.

Prudent Use of Leverage – HGI aggressively manages the capital structure of a real estate investment, utilizing prudent leverage, obtaining financing on the best terms available in the market in order to provide transactions with increased downside protection.

Real Estate Investment Focus – Due to its size and reputation, HGI is presented with thousands of opportunities per year. However, it focuses only on deals that fit its strict real estate investment parameters.

Exit Strategies – HGI only commits to investments that offer clear, realistic multiple exit strategies primarily through refinancings, sales to private investors, institutions or public REITs. HGI believes that a disciplined approach at the time of investment enables it to better assess exit alternatives as they arise.