Goodstone seeks core-plus, value-added and opportunistic office building investments between $10 million and $100 million that can be acquired at a discount-to-replacement cost and appeal to institutional investors at disposition.
Changing space needs are creating opportunities to rebrand and reposition buildings that lack the qualities sought by today's office users. Many of these properties have functional but correctable obsolescence, are in distress, or are otherwise failing to perform to their full potential due to ownership, financing, or capital limitations.
Buildings with amenity-rich, irreplaceable locations close to strong mass transit systems and major transportation arteries, with physical characteristics that are reponsive to submarket users, are preferred. Value creation opportunities include:
- Taking existing or pending vacancy and lease-up risk and investing in flexible space configurations that provide efficiency, encourage productivity, and appeal to today's office users;
- Investing in base building and interior common areas to modernize, reposition and/or rebrand;
- Converting “brown” buildings to “green” ones that manage utility expenses, and controlling operating and capital costs;
- Solving operational issues and tenant concerns, and addressing deferred maintenance items; and,
- Rethinking, redeveloping and repurposing functionally obsolete buildings and underutilized land.
Goodstone targets investments in Washington, DC and the major Texas markets because their economies have been primarily driven by consistent, long-term job growth in sustainable industries such as technology, health care, education, energy and government.