Proprietary Investment Analytics & Research Tools - Key to Determining Superior Locations
Download: Acquisition Parameters (PDF)
Steelbridge Capital's core philosophy as a real estate investment firm is to only invest in locations with true competitive advantage and that fit into our value model. This is defined as those locations with: (a) strong natural and political supply constraints to limit new competition, (b) strong demand fundamentals supported by demographic research, including strong job and population growth, and (c) an abundance of affluent housing. These high growth/high barrier markets have traditionally outperformed other real estate markets. Furthermore, we only buy assets on a value basis - that is below their long-term depreciated replacement cost - in order to insure adequate risk-adjusted returns.
Chicago has many of these neighborhoods along its lakefront, while Florida has seven markets that fit these criteria including Tampa, Sarasota, Naples, Miami, Ft Lauderdale, Boca Raton, and Palm Beach. Steelbridge Capital has a special expertise in these markets that will enable it to take advantage of the present market down cycle.
Understanding the intricacies of real estate's highly cyclical nature, Steelbridge Capital believes that market timing is the fundamental key to generating required returns. We rely on six core tactics:
- We are dedicated, but cautious value-investors looking for out of favor asset classes and market in order to minimize capital competition
- We are research-driven, focusing on exploiting information advantages in order to capitalize on inefficiencies in markets
- We continue to mine and develop our proprietary data base of properties that we believe have the best opportunity for strong risk-adjusted returns
- We believe in creating strong local operating knowledge and expertise by developing our operating platform
- We believe in maximizing our reach through new and existing relationships with brokerage firms and key information sources
- We stay within our expertise - office buildings, limited mixed-used commercial space, and urban retail
Steelbridge Capital invests primarily in Florida and Chicago in 20 different submarkets that best fit its investment criteria of strong supply constraints and strong demand fundamentals. These target submarkets are determined primarily through rigorous demographic research and detailed area profiling.
Steelbridge Capital has a proprietary database of Florida and Chicago commercial real estate opportunities that it tracks on an ongoing basis. These analytics have allowed us to gauge the marketplace at any point in time, staying well ahead of the curve of economic fluctuations. For example, from 2005 to 2008, Steelbridge Capital sold a portfolio of more than $400 million of office, retail, and light industrial throughout Florida and Chicago to strong risk adjusted returns.
Part of our research program is the profound understanding of the history of each metropolitan area's growth and political, social, and geographic development over an extended period of years. Steelbridge Capital's understanding of the Florida and Chicago markets, for example, is based on over 25+ years of experience in these locations. These proprietary metrics now point to various opportunities to buy Florida and Chicago assets at significant discounts to replacement cost.