Deal flow criteria: what we underwrite beyond the pro forma
Future of Cities shares the three key lenses it uses to evaluate investment opportunities beyond just the financial projections.
Ecological uplift
At Future of Cities, we believe that real estate development has a responsibility to enhance the natural environment, not just minimize its impact. That's why one of our core underwriting criteria is the project's potential for ecological uplift — tangible improvements to the local ecosystem that go beyond compliance.
"We look for opportunities to restore wetlands, reintroduce native plant species, and enhance urban tree canopy," explains Tony Cho, our founder. "These aren't just nice-to-haves, but critical interventions that can improve air and water quality, reduce urban heat island effects, and create healthier habitats for local wildlife."
For the PHX JAX project in Jacksonville, the team has identified several ways to boost the site's ecological performance. This includes expanding the adjacent Emerald Trail greenway, installing bioswales and permeable pavement to manage stormwater, and planting over 500 new trees across the district.
"We quantify the ecological impact of each initiative and bake it into our underwriting," says Cho. "It's not just about maximizing returns, but creating lasting value for the local community and environment."
Community ownership share
Another key lens we apply is the project's potential to foster community ownership and wealth-building. We believe that the best urban districts are those where local residents have a direct stake in the development's success.
"Too often, large-scale real estate projects end up displacing and pricing out the very communities they're supposed to serve," notes Cho. "We want to flip that script, creating opportunities for local entrepreneurs, artists, and residents to participate as investors and owners."
For PHX JAX, the team has committed to reserving at least 20% of the district's commercial and residential space for local-serving businesses and affordable housing. They're also exploring models like community land trusts and tenant-in-common ownership to give residents an equity stake.
"It's about more than just good optics — it's about building lasting, equitable prosperity that uplifts the entire neighborhood," says Cho.
Operator quality
Finally, we place a heavy emphasis on the quality and track record of the operating team. Even the most promising project on paper can fail without seasoned, mission-driven operators at the helm.
"We don't just look at the numbers — we get to know the people behind the deals," explains Cho. "What's their vision for the project? How do they plan to engage the community? What's their track record of successful, impactful developments?"
The PHX JAX team, led by Cho himself, brings over 60 years of combined experience in district-scale development, placemaking, and community engagement. They've proven their ability to navigate complex urban environments and deliver projects that catalyze positive change.
"At the end of the day, it's not just about returns — it's about creating places that improve people's lives," says Cho. "That's the kind of mission-driven operator we want to back."