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.
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.