Strategy – Shorenstein

STRATEGY / DIFFERENTIATORS / Case Studies

Shorenstein approaches real estate as a dynamic business driven by ever-changing tenant requirements, demographic trends, technological innovation, and global capital flows. With this perspective, Shorenstein has consistently executed an investment strategy built on a number of core principles:

Market selection

Invest in “talent cluster” markets where high-quality employers and employees choose to locate, creating strong and consistent leasing demand.

Asset selection

Acquire and develop properties that, by virtue of location, physical quality, amenities or other distinct features, can be positioned to offer sustainable and differentiated leasing advantages over their competition.

Add
value

Focus on situations in which there are financial or operating issues that, when rectified, will create a stabilized investment with a durable income stream and broad appeal to institutional buyers.

Leverage & exit timing

Maintain control over exit timing by using leverage that will enhance returns while not putting the property at risk during periods when leasing markets soften or capital markets become constrained.

Understand risk & return

Measure performance by multiple metrics (IRR, equity multiple, leveraged and unleveraged return on cost) in order to properly assess the risk/reward profile of investments.