North Star is a Value Added Investor
North Star generally seeks properties with occupancy in the 60-70% range and/or with submarket rents where the passage of time and leasing activity result in increased revenue and value and where capital investment into tenant improvements can make the properties more attractive and marketable.
Generally, this investment raises occupancy to between 90-100%, and results in significant increase in value above the original investment.
The Company is resolute in following its investment criteria. In order to grow, North Star has periodically refinanced properties to recapture equity for additional investment. Leverage has never exceeded 70% loan-to-value on any property.
Geographic, Demographic and Economic Criteria
- Western United States
- Second tier cities and submarkets of larger metro areas
- Major distribution points
- At least two major interstate highways
- At least one interstate rail line
- Growing population
- Significant manufacturing, service and distribution activity
Property Specific Criteria
- No less than 60% occupancy
- Close proximity to interstate highway(s)
- Multiple tenant
- Limited office component
- Readily rehabilitated if and when needed
- Readily “retrofitted” without major expense if and when needed
- Stabilized forecast cap rates of at least 8%
- Sub Market rental rates with the potential to bring to market levels within a short timeframe