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;
- 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.
- 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.
- 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.
- 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.
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“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
 
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