Fundamental Value Approach

Rockpoint focuses on investing in properties that offer intrinsic long-term value. Rockpoint seeks to acquire assets at attractive values relative to replacement cost, stabilized cash flow and comparable market sales and to avoid opportunities where key value drivers are not real estate based. Rockpoint underwrites investments on an unleveraged basis and then customizes capital structures in an effort to optimize risk-adjusted returns. Rockpoint believes that its focus on value-oriented investing provides downside protection.

Geographical and Property Type Focus

Rockpoint focuses primarily on investments in office, hospitality and multifamily assets in major supply-constrained coastal markets in the United States. However, the flexibility to invest across markets, property types and capital structures is central to Rockpoint's investment strategy. Rockpoint believes that this approach will allow it to maximize risk-adjusted returns at the portfolio level by proactively targeting specific investment types given existing market conditions.

Investment Theses

Rockpoint targets real estate investments that fall into the broad categories of value creation opportunities and complex situations.

  • Value creation opportunities. Many investments Rockpoint pursues are expected to provide opportunities for near-term increases in value through proactive asset management. These opportunities may involve more focused management of operating expenses, implementation of capital expenditure programs to reposition under-utilized assets, or re-leasing vacant space as well as other initiatives to increase revenue. Additionally, in select instances and in certain markets that benefit from strong supply/demand fundamentals, Rockpoint may pursue discrete, best-in-class development or re-development opportunities that provide the potential for high returns with prudent levels of leverage.

  • Complex situations. Complex situations often involve multiple aspects of real estate investing and offer attractive risk-adjusted returns due to inefficient pricing. These investments may include restructuring and/or recapitalizing dysfunctional partnerships, originating highly structured debt or preferred equity positions, or other situations that are unique and therefore difficult to evaluate.