QUALITY NEIGHBORHOODS & STRIP CENTERS
- Purchase price of $5 to $25 million Stabilized with cash on cash returns starting at 6% – 7% with 60% – 65% leverage and 30 year amortized 5-10 year term debt.
- Value Added returns on 3-5 year holds of 15% + IRR assuming 65% interest only debt.
- Neighborhood Centers – primarily selecting shadow anchored centers for the DST structure.
- Markets – secondary and tertiary in CA, AZ, NV, OR, WA, CO, NM, TX, KS, NC, SC, FL.
- Can assume existing financing.
- Can work with existing owners to “recapitalize” through a joint venture.
ATTRIBUTES & OPPORTUNITIES
- Stabilized – under managed, below market rents, deferred maintenance and at least 85% occupied.
- Value Add – up to 40% vacancy, under managed, redevelopment/repositioning opportunities, deferred maintenance.
NNN LEASE PORTFOLIO CRITERIA
Starboard’s NNN Leased acquisition criteria is to acquire primarily retail or restaurant use single tenant NNN leased properties between $1,500,000 and $5,000,000 per property for aggregation into a single DST offering for 1031 exchange investors. The tenants of the properties will have at least 12 years on the initial lease term remaining plus lease extension options, rent increases every 1-5 years, and be located on markets with population and job growth. The holding period will be 7-10 years and typically will obtain 60% loan to value loans, fixed interest rate and 10 year term.
MULTI-FAMILY CRITERIA
Starboard’s Multi-Family acquisition criteria is to acquire primarily Class A and at least 100 units for 1031 exchange investors in a DST structure for a 7-10 year hold period. The purchase prices are typically at least $15 million. Financing is typically 55%-65% fixed rate for 7-10 year term. The Company may also acquire value add Class B properties that may not qualify for 1031 exchange and are typically 3-5 year hold period. The purchase prices are typically at least $5 million. Financing is typically 55%-65% variable bridge financing with a 3 year term plus two 1-year extensions. The market criteria includes locations with historical and projected population and job growth in primarily secondary markets in the western U.S.