CORPORATE

StarPoint Properties is a real estate investment and operating company with a 25 year track record of delivering outstanding and above market returns to its investors by focusing on the acquisition, development and redevelopment of under-valued multifamily and commercial properties. The primary goal of the firm is to deliver asymmetrical returns vs risk and to outperform most other alternative investment vehicles, which the firm has done during its entire history.

The firm’s success comes from leveraging: seasoned management team, proprietary underwriting systems, decades of developed infrastructure and sourcing the right strategic assets through its deep acquisition network.

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Average Annual Return on Investment
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Square Feet of Current Portfolio
$ 1 m +/-
Current Portfolio Size

The firm believes that real estate should not be a speculative investment.  It is an operating business that requires operating sophistication coupled with an intelligent and disciplined acquisition strategy.  In this pursuit, we have developed a vertically integrated operating business that allows us to control and master the core drivers of the business enabling us to execute at a high level, control risks and deliver results.

Since its inception in 1995, StarPoint has acquired over 10 million square feet of commercial and residential properties, totaling an aggregate value of over $1 billion.  Our track record and historical performance speaks for itself – through December 2015, StarPoint’s portfolio has delivered an Average Annualized Return On Investment of 39.05% (1).

(1)  Returns have been calculated and reviewed by the 3rd party accounting firm of Fishman, Block + Diamond, LLP.

INVESTMENTS

Investment Strategy
PHILOSOPHY

StarPoint employs a collaborative and multi-disciplined approach to investment execution.  Our investment philosophy has been shaped over multiple market cycles as we maintain an acute awareness of each asset class’ vulnerabilities and limitations during periods of slow growth or adverse conditions, as well as its potential under improving economic conditions.  StarPoint’s proven investment philosophy and process is based on four key principles: management, focus, discipline and value creation.

  • Management – Hire and keep real estate executives who have proven expertise in their discipline.  Build a neural network of real estate minds that collaborate to deliver results and demand performance and execution at all levels of management.  Only keep and promote the best.
  • Product – Focus on a limited number of product types and build experience and core competencies that allow us to execute at a high level.
  • Markets – Focus on strategic markets and constantly reassess those which meet our investment criteria and demonstrate the proper fundamentals that can deliver results.
  • Discipline – We use industry-leading and proprietary systems 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 multi-faceted 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.
STRATEGIES
  • 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.
CRITERIA

Multi-Family

  • Strategic Markets:  California, Washington State, Colorado, Florida, and Texas.
  • Transaction Size:  $5m – $100m
  • MF Transaction Type:  Value-add & Opportunistic.

Commercial:

  • Property Type:  Anchored/Unanchored Retail Centers, Urban Retail, Mixed Use, Office, Single Tenant NNN.
  • Asset Class:  A+ to C-
  • Purchase Price:  $5m – $100m
  • Markets:  California, Portland, Seattle, Denver, Salt Lake City, Dallas, Austin and various other MSAs on a case by case basis.
  • Return Profile:  Value-add, opportunistic
  • Source of Funds:  Internal, Private capital, and Institutional Equity.
Historical Performance

StarPoint Investors’ Average Annual Return on Investment
vs
Market Indexes

 

Case Studies

Multi-Family

La Paz and Meadow Creek Apartments

  • Acquisition Price: $40,000,000
  • Number of Units: 302
  • Renovation Costs: $1,800,000
  • Disposition Price: $52,750,000
  • Hold Period: 20 Months
  • Levered IRR: 41.06%

CASE SUMMARY:

StarPoint purchased the La Paz and Meadow Creek Apartments. StarPoint immediately upgraded the entryway and installed new monument signage at the property creating better visibility and increased prospect traffic.  Next, StarPoint upgraded the leasing office and built out a brand new state of the art fitness center.  A theater and business center were added to the property to round out the amenity upgrades.  StarPoint improved the interiors of the units by installing vinyl plank flooring, upgrading to a stainless steel appliance package, installing granite counter-tops, and updating the cabinets.  StarPoint sold La Paz and Meadow Creek approximately 20 months after its acquisition and produced a 41.06% internal rate of return for its investors.

Before

After

Le Club Apartments

  • Acquisition Price: $57,000,000
  • Number of Units: 370
  • Renovation Costs: $2,100,000
  • Disposition Price: $66,000,000
  • Hold Period: 15 Months
  • Levered IRR: 39.87%

Case Summary:

StarPoint purchased Le Club Moorpark apartments and began its substantial renovation to the property. The property had below market rents and a low income rent restriction set to expire which allowed StarPoint to rapidly increase rents upon turnover and renovation.  StarPoint installed a new appliance package, updated countertops, new cabinet faces, and updated flooring throughout each renovated unit.  The exterior amenities were upgraded by expanding the gym, improving the current leasing office, adding in a playground, and upgrading the main pool area.  Lastly, StarPoint did a major overhaul to the landscaping throughout the property.  After a 15 month hold period StarPoint sold Le Club Apartments for $9,000,000 more than its original purchase price resulting in a 39.87% internal rate of return for its investors.

Before

After

The Tower at Hollywood Hills

  • Acquisition Price: $15,250,000
  • Number of Units: 80
  • Renovation Costs: $1,800,000
  • Disposition Price: $21,700,000
  • Hold Period: 19 Months
  • Levered IRR: 42.2%

Case Summary:

StarPoint purchased the Sterling Apartments.  While the previous owner thought that they had maximized the value and rents at the property, StarPoint saw an opportunity to do a major class A rehab and cater to the Hollywood elite.  By spending approximately $20,000 per unit StarPoint was able to increase rents 58% at the property.  Its rehabilitation included new appliances, new granite countertops, new wood floors, and new plush carpeting.  StarPoint also updated the gym, pool area and front facade of the property.  Rebranding the property “The Tower at Hollywood Hills”, StarPoint executed its disposition plan and sold the property for approximately $6,500,000 more than the original acquisition price resulting in a 42.2% internal rate of return for its investors.

Before

After

Commercial

The Roxbury – Beverly Hills, CA

  • Acquisition Price:  $44,522,000
  • Square Feet:  110,586
  • Current Valuation:  $110,000,000
  • Value Creation:  $65,000,000

Case Summary:

StarPoint acquired a 101,586 sq ft office building in the Beverly Hills Golden Triangle at 75% occupancy, for approximately $44,522,000.   Identifying deficiencies in the previous owner’s operations of the asset, StarPoint quickly renovated and upgraded common areas and amenities to a true Class A asset.  Through this renovation and rebranding effort StarPoint was able to maximize income both by increasing rents from office tenants and maximizing Medical use in the building, growing the NOI by 75%. Today the property is 95% occupied with a value exceeding $100,000,000.

Photos

StarPoint Towers – Fresno, CA

  • Acquisition Price:  $4,500,000
  • Square Feet:  152,000
  • Disposition Price:  $13,750,000
  • Hold Period:  47 Months
  • Levered Project Level IRR:  26.98%

Case Summary:

StarPoint purchased the 152,000 square foot 45% occupied foreclosed office asset in Fresno from the lender for $4,500,000.  After substantial renovations and a rebranding effort,  the asset’s occupancy was increased to 75% with a 300% increase in NOI.  The asset was sold for $13,800,000, with an IRR of 26.98%.

Before

After

Rite Aid – Glendale, CA

  • Acquisition Price:  $6,050,000
  • Square Feet:  52,000 sqft of land
  • Construction Costs: $3,200,000
  • Disposition Price:  $14,100,000
  • Hold Period:  15 Months
  • Levered Project Level IRR:  64.97%

Case Summary:

StarPoint purchased a vacant Marie Calendars restaurant pad sitting on 52,000 square feet of land in Glendale, California.   StarPoint’s management team quickly analyzed the best use for this land given city requirements and neighborhood needs, and thus signed a 20 year lease with Rite Aid for a build-to-suit site.  Within 15 months time StarPoint’s management team was able to acquire all city permits, develop the turn-key site, and deliver the building to the Tenant.  The property sold in July of 2016 at  64.97% IRR.

Construction Progress

McDonald’s Hawthorne, CA

  • Acquisition Price:  $1,700,000
  • Square Feet:  33,000 sqft of land
  • Disposition Price:  $3,600,000
  • Hold Period:  13 Months
  • Levered Project Level IRR:  143%

Case Summary:

StarPoint acquired an approximate 33,000 sq ft undeveloped land, after having identified quick service restaurant as the best use of this land.  StarPoint was able to negotiate a lease with McDonald’s, get the proper entitlements for the retail and drive-thru use, have the property developed all within 1 year of the acquisition date.  The asset returned a 143% IRR.

Construction Progress

Current Offerings

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PORTFOLIO

FEATURED PROPERTIES
Multi-Family
/
Commercial
The Roxbury
Beverly Hills, CA • 110,586 Sqft
Foothill Ridge
Foothill Ridge, CA • 232 Units
LaFayette Parc
West Covina, CA • 259 Units
Citiview Terrace
North Hollywood, CA • 108 Units
Throckmorton
Fort Worth, TX • 352,942 Sqft
StarPoint Towers
Fresno, CA • 154,390 Sqft

TEAM MEMBERS

Paul Daneshrad
Chief Executive Officer
Michael Farahnik
Executive Vice President
Gregory Jones
Chief Financial Officer
Evan Farahnik
Managing Principal
Sheila Daneshrad
Director of Human Resources
Ethan Bui
Director of Information Technology
Michael Mortimer
Directors of Acquisitions
Jon Suematsu
Regional Manager, Multi-Family
Kai Hsieh
Corporate Controller
Wade Smith
Senior Engineer/Maintenance Manager
Ana Limon
Executive Assistant