Investment Strategy

Harborside Partners are value-added operators that provide investors with direct access to institutional grade, investment properties and operating characteristics and competitive dynamics that drive long term value through collaborative partnership. We believe that transparent and disciplined principles are critical to success in the private equity real estate sector.
Opportunities are individually offered to investors; providing limited partners with access to a full range of tax efficient income producing properties. Our proven investment strategy has created consistent and exceptional investment performance across fluctuating economic cycles, by forcing growth and increasing equity value.
Harborside Partners Inc. is currently pursuing commercial real estate investment opportunities in growth-oriented markets with a focal point on multifamily properties.

ACQUISITION APPROACH

1. FOCUS

2. DISCIPLINE

3. VALUE CREATION

Investment Criteria

Transaction Size:
  • $2 million – $20 million
Property/Portfolio Size:
  • 50 – 300 units
Property Types:
  • C+ to B multi-family properties are preferred in B to A markets
  • Mixed-use properties with over 90% residential housing
  • Self-storage facilities
  • Mobile home parks
Age:
  • 1978 and newer is preferred
Target Markets:
  • The entire southeast (with a focus on Florida); where taxes and regulations are not as burdensome.
Areas:
  • C+ to A+ locations with economic diversity and strong demographics
Target Return:
  • 13% – 15%+ cash-on-cash return
Other Parameters:
  • Value add opportunities
  •  Asset acquisition at cyclical lows (20%+ below replacement cost)
  • Areas experiencing gentrification are preferred

Repositioning and Value Creation

Harborside Partners purchases structurally sound properties in thriving areas with value-add opportunities normally arising from; neglected maintenance, inadequate management and/or distressed owners. All assets are thoroughly examined to validate the future ability of reducing expenses, increasing rents while simultaneously providing safe and clean, housing and workspaces.

Our company understands that an increase in net operating income by correcting any inadequacies will not only increase cash flow to all partners, but also force appreciation; permitting properties to be refinanced with long-term, fixed rate, fully amortizing agency debt. Refinancing, most importantly, unlocks equity and allows the withdrawal of most, if not all of the limited partners’ initial contributions.

Normal renovation projects necessitate 3–12 months; with more stabilized assets requiring minimal time while larger projects demand upwards of a year to complete; all capital improvements, leasing, expense efficiencies and management transitions. Upon stabilization; net operating income (NOI) and value will substantially increase. Our firm will season the stabilization for 12-24 months before refinancing or divestiture.

Assets held for the long-term will benefit from not only our in-house asset management team but also from our property managers. We utilize the best third party property managers with verified track records of managing similar property types in the immediate area. Our on-site managers are owner-minded and believe in; minimizing turnover, maximizing income while maintaining the quality standards we employ in of all of our properties.

Strategy After Repositioning:
  • Refinancing and extracting the LP’s initial investment; once significant value has been created
  • Disposition is a possibility, during optimal market conditions, to capture price premium (for tax efficiency, there is a minimum hold period of 36 months)
Value Creation Agenda:
  • Comprehensive due diligence of each property; administered by seasoned real estate operators
  • Competitive financing secured
  • Capital improvements with an experienced team of project managers
  • Pursuit of additional revenue sources and expense efficiency
  • Utilization of skillful, hands-on, third party property management firms that ensure; vacancies are leased immediately, turnover is minimized and assets are maintained in exceptional, sales-ready condition
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