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
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.
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.
Starboard Management Services, LLC
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.