Investment Strategies

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 industrial property. Offices and warehouse.

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 $5 and $50 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.

Acquisition Process

Utilize our network of over 18,000 brokers to see virtually all on and off market deals.

Provide detailed underwriting to ensure that the investment will meet our yield objectives.

Conduct multiple on-site visits.

Interview tenants, leasing agents and current property management team.

Obtain reports from roofing, parking lot and HVAC contractors to get an accurate picture of the condition of the property.

Perform exhaustive market research and analysis to ensure underwriting assumptions are accurate and in-line with the market.

Obtain third party reports including appraisal, phase one environmental report and property condition report.

Solicit multiple proposals from prospective lenders to obtain optimal terms for debt.

Integrate the Avistone Asset Management team into the due diligence and closing process to ensure a seamless transition upon closing escrow.  Prior to closing, leasing agents have been selected, the property management team has been introduced to each tenant and construction contracts have been signed for any necessary remediation work.

Asset Management

To achieve the best results for our investors, we expertly manage each property and focus on the needs of our tenants.

Tenant Retention

The first priority of Avistone’s asset management team is to provide superior service to its tenants. By understanding the needs of each tenant and responding promptly to any issues that may arise, the asset management team increases tenant retention thus reducing the time and costs associated with retenanting the space.

Increased Occupancy

Avistone’s asset management team has developed specific processes that promote higher occupancies. From its marketing program and selection of the leasing agent to the scope and timing of vacant unit renovations, every detail of this process is geared toward increasing occupancy as quickly and profitably as possible.

Property Maintenance

Immediately upon closing a new property acquisition, the Avistone asset management team begins the process of improving the property to meet our strict standards. Typical immediate improvements include roof replacements, landscape upgrades, parking area repairs and the addition of uniform tenant signage. During our ownership, meticulous attention is paid to the aesthetics of the property, so each tenant can be proud to call an Avistone property their business home.

Learn More About Avistone’s Investment Offerings

To view Avistone’s current offerings and learn about future opportunities complete the form to the right.

Avistone industrial property. Office and warehouse space. Ideal for investors seeking 1031 exchange properties.