Understanding where a particular asset stands or may stand among its peers is essential for determining how it can/should compete for tenants and capital. Additionally, you must assess the risk associated with maintaining or improving the asset and its cash flow, while also determing the pricing and liability risk of its capital structure.
Whether for a new investment, reviewing an existing portfolio, or advising a client, CAPSTAR has a rigid process for classifying assets using quantitative and qualitative analysis plus judgement and expertise. The goal of investment style classification is to assess the cash flow attributes and the pricing, execution, and liability characteristics of each asset.
Our team at CAPSTAR scores each investment across 8 risk parameters and assigns risk ratings (Low, Moderate, High) for pricing, execution, and liability characteristics. This process and data leads CAPSTAR to what can and cannot be maintained or improved and what risks can and cannot be mitigated. Only when the data and opportunity is convincing do our experienced, hands-on principals and network of local professionals begin to execute.