Accredited Investor

If you are an individual or private investor, you must be an Accredited Investor to invest in our properties. For an individual, in order to qualify as an accredited investor, you must meet one of the following criteria:

• Earn an annual income exceeding $200,000 or joint income exceeding $300,000 together with a spouse or spousal equivalent.
• Have a net worth exceeding $1 million – excluding one’s primary residence.
• Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
• If your investment entity is a family office, LLC, corporation, partnership, trust, REIT or Qualified Plan, please call us for Accredited Investor standards.

The SEC considers accredited investors to have sufficient amount of wealth, as to not need the protection of federal and state securities laws as those who are not accredited investors do.

Retail Shopping Centers

“Our overall investment objectives are to preserve and protect investor capital, provide attractive and stable cash flow and increase the value of properties in order to generate capital appreciation.”

​We invest in Anchored retail centers because:

• Retail center tenant leases are triple net, which means the tenants pay operating expenses, real estate taxes and insurance
• Retail tenants often include “credit” tenants because they have bond rated credit or have multiple locations, which usually results in more successful tenants and stability of the centers income
• Retail leasing costs such as tenant improvements are usually less than office and industrial tenant leasing costs
• The centers are multi-tenant, which diversifies the income and most tenant leases have annual rent increases.

The attributes of the shopping centers we primarily buy:

• Anchored by grocery stores or big box (such as Target or Costco) with needs based shop space adjacent to the anchor.
• Properties that are at least 85 percent occupied at the time of purchase.
• Properties purchased at a discount to replacement cost.
• Properties with moderate length lease terms of 3 to 10 years
• Properties with a diversified tenant mix: diversified geographically in ‘high barrier to entry’ markets with a variety of tenants.
• Loan leverage of no more than 65% loan-to-value.

We believe that retail centers, bought at the right price, should provide strong current yields, and the potential for growth in asset value over time. Some recent trends include:

• Improving economy and consumer confidence are increasing retail sales demand for retail space.
• Increasing tenant sales is translating in tenants being able to pay higher rents
• Supply is expected to remain low.
• Vacancy rates are decreasing and remain low in high barrier to entry markets.
• Over-levered developers and owners are facing financing challenges and foreclosures, creating buying opportunities for buyers.
• Continued low interest rates for commercial debt.”

Multi-Family Properties

“Starboard’s Multi-Family acquisition criteria is to acquire primarily Class A and at least 100 units for 1031exchange 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 locationswith historical and projected population and job growth in primarily secondary markets in the western U.S.”

NNN Leased Properties

“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.”

Affiliates

“Starboard Management Services LLC is a wholly owned subsidiary of Starboard Realty Advisors LLC providing asset management, property management and leasing oversight/administration to properties acquired by Starboard. The property business plan and investment strategy is implemented by Starboard and the property’s assigned asset manager. The asset manager selects the most qualified property manager, leasing broker, project manager or general contractor based on the property type,
scope of the assignment and market location. Through Starboard’s prior experience, it has learned that local market knowledge and experience is key to determining realistic goals for the investment and then successfully implementing the strategy. Construction management, including entitlement work, architectural design, construction documents, construction cost estimating and construction supervision are services provided or supervised by the company.”

These are the four common investment structures we use to own investment real estate.

Limited Liability Company (LLC)

The property is usually held in a Limited Liability Company (“LLC”), General or Limited Partnership structure, usually domiciled in Delaware. These entities are reported as a partnership for tax purposes and the members of the LLC receive a K-1 partnership tax return for federal and state income taxes.

Delaware Statutory Trust (DST)

An investment structure used for a single asset or portfolio of assets. The DST qualifies for IRS 1031 exchange as like kind property.  Investors report their investment on Schedule E as direct real estate investment in the federal tax returns.

Tenant In Common (TIC)

Direct ownership with up to 35 direct owners used for a single asset or portfolio of assets.  TIC usually qualifies for IRS 1031 exchange as like kind property.  Investors report their investment on Schedule E as direct real estate investment in the federal tax returns.

Private Real Estate Investment Trust (REIT)

An investment structure that is a “pass through” entity, meaning it is a disregarded entity from tax and IRS perspective.  Investors receive a 1099 for the dividends received each year.

We offer core plus, value add and opportunistic investments (as defined below) intended for high net worth and institutional partners. The opportunities are larger in acquisition price and complexity, which generally fits what many institutions are seeking. Starboard acquires retail shopping centers that have a redevelopment opportunity. The typical investment period is three-five years, but there can be no assumption of any exit timeline.

Core Plus

A moderate-risk/moderate-return strategy. These are Core properties that will require some form of enhancement or value-added elements and they may be in secondary markets.

Value Add

A medium-to-high-risk/medium-to-high-return strategy. It involves improving the property and timing the sale at an opportune time. These properties typically have management or operational problems, require physical improvements, leasing and have suffer from capital constraints.

Opportunistic

A high-risk/high-return strategy. These properties will require a higher degree of improvements, such as re-purposing, new entitlements, ground up development, and buy out and/or relocation of tenants.

Development

Ground up retail and select service hotel development with low entitlement risk.  Locations with high demand generators for our proposed use and low and quantifiable competitor development risk.