Identify

ACQUISITIONS & INVESTMENTS PROFILES

• Core-Plus

  Northpoint’s core-plus investment strategy focuses on achieving stable cash-on-cash returns by acquiring close to stabilized assets. This investment strategy is driven by the confluence of attractive financing terms and the ability to acquire stable cash-flowing assets at a basis below replacement cost. While current return is paramount, we are seeking investments that also offer long-term growth prospects and provide additional upside over the mid-to-long term.

  Stabilized Industrial & Warehouse in Strong Markets

  • Target older vintage properties in growth submarkets where demand is expected to outpace new supply.
  • Pursue desirable submarkets, with local demand drivers like institutional, educational, and employment hubs, and with adequate infrastructure and public facilities.

  Additional revenue growth can be provided with marketing and management optimization, expanding amenities and renovations.

  Longer Term Leased, Office/Industrial & Warehouse

  • Identify office and Industrial & Warehouse property located in suburban and secondary markets that can be acquired at below replacement cost, with above average returns on existing cash flow and are financeable.

  High cash on cash returns allows the return of invested capital through cash flow, before existing leases expire, minimizing risk to investors.

• Value-Add

  Northpoint’s value-add investment strategy is to acquire weaker stabilized cash-on-cash and overall returns and then maximizing upside during stabilization through additional investment and management optimization. This strategy focuses on buying out-of-favor, low occupancy and distressed/under-utilized properties at a basis that is well below replacement cost. Assets will have strong long-term potential and provide immediate to mid-term opportunities to add value physically or operationally. These assets will require additional capital investments and will typically generate low cash flow initially, but with proper execution generate attractive yields once stabilized. Returns are maximized by refinancing with lower cost long-term debt and returning equity to investors or sale.

  Reposition/Renovate Stabilized Apartments and Industrial & Warehouse

  • Seek out older vintage apartments and Industrial & Warehouse that have below market rents and occupancy, inefficient property management and expense controls, and unrecognized revenue generation opportunities.
  • Locate properties in established or up and coming neighborhoods with strong demographics that will support a higher income tenant profile.
  • Execute on upgrading management and marketing while re-positioning the property through capital improvements.
  • Maximize expense controls and improve marketing and leasing strategy and substantial re-branding campaign.

  Upon stabilization, returns can be maximized by refinancing with lower cost long-term debt and returning equity to investors or a sale.

  Industrial/Warehouse Properties with Lease-up or Repositioning Potential

  • Identify Class B/C or obsolete industrial/manufacturing properties in growing distribution and manufacturing markets with low Class A supply and proven demand drivers.
  • Leverage in-place cash flow to offset operating costs with current leases terms remaining, providing downside protection during asset stabilization.
  • Utilize experienced leasing teams to minimize the lease-up period.
  • Upgrading management and marketing while re-positioning the property through capital improvements (i.e. envelope improvements, lighting, life-safety, loading, circulation, parking).

  Upon stabilization, assets can be either sold or refinanced and held for cash flow.

• Opportunistic

  Northpoint’s development acquisition/investment strategy is truly opportunistic. This strategy focuses on development of multifamily, industrial/warehouse, self-storage and retail in the well-located submarkets with higher barriers to entry and supply constraints, build to suits for tenants with a purpose in less supply constrained markets and land entitlement and development for home builders.

  In addition, we seek long-term “covered land play” opportunities. We focus on achieving moderate to low cash-on-cash returns in during a hold period, with limited downside and significant upside potential. The assumption is that these properties will be ripe for redevelopment in an upcoming cycle or because of a future event. While this strategy is less risky than acquiring raw land because the existing improvements generate a cash flow that covers carrying costs there are generally entitlement and land use processes that need to be perfected. Assemblages of adjacent properties during the hold period are desired to maximize any opportunity’s potential.

  Ground-up Development

  • Develop in low supply and high barrier to entry markets.
  • Build high quality sustainable and Class A office, industrial/warehouse, self-storage, and multi-family.
  • Limit risks to investors by leveraging our vertically integrated platform to maximize efficiency and execution.

  Industrial/Warehouse

  • Identify obsolete or vacant industrial/manufacturing in good locations, within close proximity to transportation corridors and near demand drivers such as employment centers manufacturers, distributors, sequencers and/or growing populations.
  • Identify opportunities in fringe locations along improving transportation corridors and up and coming distribution hubs.
  • Identify sale/leasebacks with occupiers with excess land.