Investment Strategy

Falcon Capital Management's multi-family division couples its strategic geographic selection with the acquisition of value-add assets and combines them with a solid operational model to deliver market leading returns.  Our investment philosophy has been shaped over multiple market cycles and we employ cycle theory to the timing of our investments.  StarPoint’s proven multi-family investment philosophy and process is based on four key principles: Product, Markets, Discipline, and Value Creation.

• Product – Focus on value add product in geographies that show specific fundamentals that will drive demand and rental growth. Leverage our experience and core competencies to ensure we execute at a high level.
• Markets – We evaluate markets on an annual basis and monitor at over 20 metrics that have proven to be drivers in the multi-family space.
• Discipline – We use industry-leading and proprietary systems to evaluate opportunities, typically analyzing several hundred deals before selecting one to purchase. We believe real estate to be a cyclical business requiring proper cycle theory and methodologies to mitigate risk and enhance long-term yields.
• Value Creation –The creation of value is a multifaceted and continuous process. Sophistication in the following areas are a tenet to the success of the business: operations, investment strategy, risk management, deep networks, construction execution, financial analysis, and information technology.

We employ various value maximization strategies, including debt-equity restructuring, discounted payoffs, asset foreclosures, overall remodeling and upgrade, capital improvements, and hands-on, day-to-day asset management to ensure a reliable, attractive return to investors. Since time to resolution is the ultimate driver of investor returns, Falcon Capital Management implements selected business plans using a milestone tracking system with its asset managers, focusing efforts and creating accountability to meet time specific goals for each asset. 

• Value-add opportunities through development, renovation, repositioning, owner mismanagement, operational inefficiencies and geographic synergy.
• Opportunistic investments which are typically more capital intensive than value-add, but with higher projected returns.
• Market targeting and arbitrage where we believe there are inefficiencies or catalyst in the market and the pricing does not truly reflect market or potential market fundamentals. Deep market analysis, timing and selection is done semi-annually.
• Cycle theory and discipline
• Off-market transactions sourced through our extensive broker network to find investment opportunities that may not always be known to the general investment community.
• Utilize tax advantages unique to real estate to help maximize returns for our investors.

• Target Markets: Major MSA's with compelling macro economic drivers  and relative value
• Transaction Size:  $5m– $20m
• Transaction Type:  Value-add & Opportunistic.

We utilize in-house data collected over decades of operating in the workforce housing sector to analyze new investments and determine the viability of specific asset enhancement strategies.