Investment Overview & Strategy

The primary strategy of the Company is to generate attractive risk adjusted returns for our investors by prudently investing in real estate related opportunities throughout major CBDs in the North East with emphasis on New York; targeting office, multi-family, mixed-use and retail. The Company will execute on this strategy by putting capital to work across the capital structure to generate attractive yields by targeting:

Real Estate Assets

  •  Invest in undervalued assets with high single / double digit cap rates.
  •  Purchase quality assets from stressed sellers.
  •  Under-capitalized or distressed situations.
  •  Well-located assets with discount to replacement cost.

Debt

  • Acquire performing and non-performing loans.
  • Originate Mezzanine and B-piece loans with high-yield returns.
  • Invest in undervalued assets with high single / double digit cap rates.
  • Five to ten year investment horizon targeting leveraged returns of 18% (net of fees).

Investment Philosophy

  • Capstone seeks out debt and equity opportunities that are not being pursued by the masses; either because of market conditions or a misperception of true value.

  • We do intensive market research and asset level due diligence on all potential acquisitions.

  • Because we have no set criteria or mandate, this flexibility has allowed us to acquire deals as small as $10 million on distressed apartment notes to large $300 million office properties. As long as we comfortable with the asset and the market, we can make decisions and execute swiftly.

  • We are not traders. We are not looking to flip assets or make short term gains. Instead, we are looking for long-term gains through cash flow and value creation.

  • We try to ignore irrational exuberance or excessive pessimism in making investment decisions.
  • “Making some mistakes is an inherent cost of investing… The important thing is to recognize them as soon is possible, to understand their causes, and to learn how to keep from repeating those mistakes.” ~ Phil Fisher
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