Identify

Identify
Forging a true partnership with our clients, we take time to understand their unique business, cost and operational drivers and goals. We then leverage our real estate, construction and operational expertise to develop comprehensive strategies to meet their specific needs. We approach each opportunity with a fiduciary responsibility to our partners and investors. We bring a true owner’s perspective to mitigate risk and ensure optimal results.

ACQUISITIONS & INVESTMENTS

Our firm draws upon decades of regional experience and an extensive network of industry contacts to seek out shrewd potential investments for our capital partners. Exhaustive research and real-time market knowledge enables us to identify, pursue and capitalize on the opportunities that are most viable and offer our partners the highest chance of success. We work closely with our clients, performing rigorous due diligence and ensuring their operational needs and financial parameters align with potential acquisition opportunities.

Our commitment to deliver strategic and innovative investment opportunities relies on the following core competencies:

  • LOCAL KNOWLEDGE. Our hands-on acquisitions and investment team has a deep understanding of the markets in which we work.
  • CREATIVE SOLUTIONS: We pride ourselves on our ability to take on complex and complicated deals, finding innovative ways to unlock their value.
  • TRANSACTIONAL CAPABILITY: From our deep experience investing in our core markets we have successfully executed numerous acquisitions and dispositions.
  • INSTITUTIONAL RELATIONSHIPS: We have a broad network of both debt and equity relationships that allow us to be more competitive in the marketplace.
  • DIVERSIFIED PORTFOLIO: Our portfolio includes multifamily, office, and mixed use/retail through strategic acquisition and development.
  • SUSTAINABILITY: We have extensive experience implementing energy and water conservation systems and programs for our new development and retrofit projects.

Strategy

Northpoint’s investment and acquisition philosophy is to target undervalued real estate opportunities in the Mid-Atlantic region – Pennsylvania to North Carolina.

We look for submarkets that demonstrate strong demand drivers like employment nodes or transportation hubs that will also be the beneficiary of potential employment, population and income growth. We also work well in supply constrained areas with high barriers to entry where we can exploit our unique vertically integrated skill sets for our investors and clients.

The opportunities we seek can be non-income producing assets or properties that generate stable cash flow with an opportunity to be maximized by more efficient operations, repositioning or re-purposing with a change of use.

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 Apartments in Strong Markets

    • Target older vintage apartments 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/Retail

    • Identify office and retail 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 Hotels

    • Seek out older vintage apartments and hotels 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 (i.e. common areas, signage, landscaping, amenities and units).
    • 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.

    Office Properties with Lease-Up Potential

    • Identify Class A/B office properties well-located in growing markets with lower supply and positive absorption.
    • 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. common areas, signage, landscaping and amenities).

    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, office and retail in the best located submarkets with high 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-termer “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 iconic office, multi-family and retail projects.
    • Limit risks to investors by leveraging our vertically integrated platform to maximize efficiency and execution.

    Apartments

    • Identify low-rise, older vintage apartments that are in infill locations, within close proximity to mass-transit, and also near local demand drivers such as hospitals, schools, and employment hubs.
    • Identify opportunities in fringe locations along transportation corridors and up and coming urban neighborhoods.
    • Rents are offered at a discount to Class A/B rents, minimizing new supply risk and competition.

    Office or Retail in Path of Growth

    • Select cash flowing older office or retail opportunities, located in older, established commercial corridors, and proximate to neighborhoods with attractive demographics.
    • Identify sale/leasebacks with stable tenants, but generally occupied by less creditworthy tenants.
    • Mitigate risk by seeking properties with tenants that have a long history occupying space in the property and with a stable outlook.

Our Capabilities

Our fully-integrated range of services enables our clients to experience a seamless, strategically executed project from inception to completion.