Investment Strategy Overview

Main Street’s management team distinguishes itself by their historical performance and experience during all phases of the real estate cycle involving many property types and investment structures.

Main Street believes that successful real estate investing is a result of a focused four pronged approach;

  1. Conduct a complete top down understanding of the property by (i) fully understanding the current and historical market of the property and submarket, (ii) understanding existing macro factors driving tenant business decisions today that would affect existing tenant occupancy and property absorption and, (iii) maintain the integrity of the income stream by understanding the property’s competitive position in the marketplace.

  2. Build a reputation of fair dealing by (i) understanding the seller’s needs, (ii) maintaining the original pricing and, (iii) have open book negotiations concerning our yield limitations in light of negative news or seller misinformation.

  3. To protect and preserve investor capital and achieve capital appreciation through (i) conservative underwriting, (ii) targeting core assets with realistic yield expectations and, (iii) utilizing a capital formation strategy that allows for multiple exit strategies.

  4. Build sustainable relationships to achieve lower future acquisition costs.

Main Street Funds are not interested in investments that are affected by unsustainable boom-bust market fundamentals. Main Street’s approach considers factors such as the macroeconomic environment, the direction of the business cycle, and local market conditions. The company believes sustainable real estate investments are available to investors who have a thorough local market knowledge and have a proven ability to close the gap between bid and ask pricing dislocation with sellers within a deleveraging marketplace.

“We believe that the next five years will be one of the most attractive real estate investment periods in the past 50 years…Due to the dramatic repricing of real estate assets thus far and the continuing uncertainty in the direction of the real estate markets, a void in the debt and equity capital available for investing in real estate has been created as many banks, insurance companies, finance companies and fund managers face insolvency or have determined to reduce or discontinue investment in debt or equity related to real estate."

Starwood Capital Group – 2009