Avistone’s Strategy
Avistone’s investment strategies focus on providing investors monthly yield and the potential for long-term capital appreciation, while mitigating risk. To that end, we purchase stabilized, multi-tenant industrial and business park properties located in growing metropolitan markets with high occupancy rates and consistent in-place cash flow. We mitigate risk by acquiring properties with multiple tenants having varying lease maturity dates and no tenant occupying more than 20% of the leasable space. Additionally, Avistone acquires properties at approximately 65% or less of their replacement cost, thus reducing the risk that newly constructed properties could compete favorably for tenants.
These investment strategies have allowed Avistone to make regular monthly distributions to its investors while property values rise due to increased operating income and falling cap rates.
Avistone’s Investment Strategy
Yield
Avistone targets stabilized, multi-tenant flex/industrial properties with consistent in place cash flow that yield 7%+ annually to its investors. Since inception, Avistone has delivered an average cash distribution yield to its investors of more than 8%.
Risk Mitigation
Avistone reduces investment risk by acquiring properties located in growing markets with high occupancy rates, having multiple tenants of varying lease maturities with no tenant occupying more than 20% of the space. Additionally, properties are acquired at approximately 65% of their replacement cost thus reducing the possibility that new construction could compete favorably for tenants.
Capital Appreciation
Avistone seeks to enhance capital appreciation by acquiring properties in dynamic and growing markets, improving properties to top-notch condition, increasing property occupancy and yearly operating income, amortizing debt and positioning the property for potential cap rate compression upon sale.
Avistone’s Strategy for Value Creation on Stabilized Properties
Target Strong & Growing Markets
Purchase in large markets with increasing occupancies and rents where continued growth is projected.
Purchase Below Replacement Cost
Ensures that any new development would not be able to offer competitive rents.
Arrange Low Fixed-Rate Financing
Creates a favorable spread between cap rates and financing rates producing higher yields for investors and protects against future interest rate increases.
Expert Asset Management
Deliver quality service to retain existing and attract new tenants, while insuring a first-class property appearance within strict budgets.
Sale of Property
Opportunistically sell properties individually, as a portfolio or via up-REIT to maximize potential value and profit for investors.
Acquisition Criteria
Property Types
We invest in multi-tenant industrial, flex and business parks.
Location
Properties located in growing markets with low vacancies throughout the United States.
Deal Size
We target deal sizes between $10 and $250 million.
Size
We prefer properties that are over 100,000 square feet.
Tenancy
10+ tenants preferred, with no tenant occupying more than 20% of the space.
Occupancy
We will consider both stabilized and value-add properties.
Asset Management
To achieve the best results for our investors, we expertly manage each property and focus on the needs of our tenants.
Learn More About Avistone’s Investment Offerings
To view Avistone’s current offerings and learn about future opportunities complete the form to the right.
